A farmers budget wish list

With the Budget due to be announced on the 23rd March, we have complied a ’wish list’ of measures for the Chancellor to implement that would provide some useful reliefs and incentives to revive the rural economy:-

Agricultural Buildings Allowances

The removal of this modest relief was seen as penny pinching, and now leaves farmers with no tax incentive to invest in new farm buildings. If the government is serious in its wish to encourage businesses in this country to assist in trading out of the recession then our farmers need the encouragement that this relief could provide. Instead of the paltry 4% per annum allowance on the cost of a new building which used to apply, may I suggest 10% per annum?

Broadband

Although not a fiscal measure, our rural businesses and communities are seriously disadvantaged by their lack of access to broadband speeds enjoyed by the rest of the country. HM Revenue & Customs and other government departments march relentlessly on with compelling the population to deal with government departments electronically, and seem completely unsympathetic to the fact that the population does not all enjoy an adequate broadband service. In some cases their advice seems to be that professional advisers can make electronic submissions on their behalf, but ignore the additional fees this will incur. The government should take steps to ensure that adequate broadband speeds are obtainable throughout the country.

Employers National Insurance

The rate of contribution is going up from 12.8% to 13.8% from 6 April 2011, which is a further dis-incentive for businesses to employ people. While there is relief from national insurance contributions for new business start ups, there is no equivalent relief for taking on additional employees in an expanding existing business. We would like to see some sort of equivalent relief for existing growing businesses.

Tax Simplification and Red Tape

The government has said a lot about reducing the administrative burden on small businesses, and this budget must deliver significant progress in this respect. One hopes that it is not mere rhetoric from the government, as up till now the administrative burden has relentlessly increased each year.