Farming unions dismiss Alistair Darling's first budget

Farming and small business organisations have dismissed Alistair Darling's first budget as a missed opportunity and criticised his renewed attack on the owners of large vehicles.

NFU Scotland said the reform of the road tax (vehicle excise duty) system from April 2009 and a further 2p hike in fuel duties from October of this year would heavily affect farmers and all those living or working in rural Scotland.

President Jim McLaren said: "The fundamental principle here is that farmers drive 4x4s because they are essential tools for the job.

"The Chancellor is clearly trying to penalise those driving big cars in city centres, but hikes in excise duty next year will also be penalising those who have no alternative.

"Particularly after the dismal year faced by many farmers in 2007, an extra 'showroom' price hike on what is an essential business tool is another slap in the face.

Vision of a fairer Britain

The Chancellor's vision of a fairer Britain in which everybody can succeed would never be realised if fuel duty continued to rise, said Farmers' Union of Wales president Gareth Vaughan today.

"All increases in fuel prices are inevitably passed down the supply chain to the consumer through higher transportation costs and rural areas always bear the brunt of these costs.

"With duty already at over 50p per litre - the highest rate in Europe and double the EU average - accounting for almost half the cost of petrol and diesel prices, Mr Darling's planned increases are yet another blow to a farming industry slowly recovering from last year's foot and mouth disease crisis.