Farming Industry Seeks Support from Government in Budget

Strategic Insights -

Farmers and growers in Cambridgeshire, a hub for agriculture in East Anglia, are facing unprecedented confidence lows due to the government's planned changes to inheritance tax. The proposed changes have sent shockwaves throughout the industry, affecting investment and threatening the future of small and medium-sized farms. Alison Morris, chair of Cambridgeshire NFU, a fifth-generation arable farmer, emphasizes the importance of farming in the region, contributing £1.4 billion to the economy, supporting 6,500 jobs, and producing healthy and nutritious food.

Key Takeaways:

  • The planned changes to inheritance tax have severely impacted farmer confidence, with many farmers cutting investments to save capital for potential tax liabilities.
  • The changes have been highlighted as poorly thought-out and damaging by independent experts, threatening the future of many small and medium-sized farms.
  • The NFU has written to the Chancellor ahead of the Budget, requesting a better targeted approach to inheritance tax reform and increased investment in the farming industry.
  • The NFU is urging the government to reinstate the relationship with farmers and growers, focusing on investment and growth in the industry.
  • The proposed changes have resulted in farmers being unable or unwilling to invest in their businesses, severely impacting food production, manufacturing, and the economy.
  • The government has been urged to rethink the reclassification of Double Cab Pick-Up trucks from vans to cars, maintain reduced rates of fuel duty, and extend Making Tax Digital to make it workable for the farming industry.

Statistics:

  • £1.4 billion: The contribution of farming in East Anglia to the economy.
  • 6,500: The number of jobs supported by food production in Cambridgeshire.
  • £153 billion: The value of the UK's largest manufacturing sector, which farming supports.
  • 4.2 million: The number of jobs supported by farming and manufactures.
  • £5m: The proposed increase in the Annual Investment Allowance to support investments in efficiency and productivity improvements.
  • 11/26: The date of the Budget, when the NFU is requesting support for the farming industry.

Sources:

  • NFU (exact reference: "NFU Cambridgeshire chair Alison Morris, a fifth-generation arable farmer based near March, said:", which is not a direct reference but used in the original)
  • NFU (exact reference: " Ahead of the Budget, on November 26", which is not a direct reference but used in the original)
  • NFU (exact reference: "The NFU has written to the Chancellor ahead of the Budget", which is not a direct reference but used in the original)