Tax framework must help not hinder agriculture

The NFU has issued a clear challenge to the Government ahead of the pre-Budget report to demonstrate its support for British agriculture and horticulture through a fair and competitive taxation framework.

NFU President Peter Kendall said:"A vibrant and productive farming sector depends, in part, on a tax system that stimulates investment and innovation while also encouraging farmers to take a long-term view of their businesses, not to mention attracting new entrants and ensuring a viable commercial environment for the next generation.

"The majority of farming businesses are SMEs, which are the backbone of the real British economy. In considering the future structure of the taxation system, I would urge the Chancellor to recognise the value that these businesses add to UK plc."

The Prime Minister’s Strategy Unit’s 2008 Food Matters report, and Defra’s subsequent online consultation earlier this year on a vision for the food system in 2030, looked at the complex interactions that need to be taken into account when considering what a productive, sustainable and resilient supply chain might look like.

Mr Kendall said:"As agriculture takes a long-term view of its future, facing up to the challenge of feeding a growing global population while impacting less on the environment, we also need a long-term vision from the Treasury. Defra Minister Lord Davies gave an assurance at the NFU’s tenants’ conference last month to look at fiscal measures that help the tenant farming sector. This is the sort of commitment which now needs to be taken up across Government.

"We are concerned that some elements of the tax system which respect the particular position of farming within the UK economy, and the distinctive form many farm businesses take, are being reviewed by the Government without consultation with the industry. We will be talking to Defra and the Treasury about how the taxation regime can help, rather than hinder, long-term investment in food security."

NFU, Agriculture House,Stoneleigh Park, Stoneleigh, Warwickshire, CV8 2TZ