President's Blog - 29 July 2010

After a few false starts at setting up a meeting with chief secretary to the treasury, Danny Alexander MP, yesterday was the day. NFU President Peter Kendal accompanied me on the visit to No 1 Horse Guards Parade, for a worthwhile exchange of ideas on agriculture’s role in helping the UK economy emerge from the depths.

Issues such as fuel duty and animal health budgets, agricultural business allowances and VAT rates were all covered.

One of the more interesting topics related to changes in corporate taxation against taxation of partnerships and sole traders. Many of the Coalition Government's targeted tax simplifications are aimed at corporate businesses, and with the majority of agricultural businesses remaining unincorporated we are set to loose out.
 
The Minister suggested that people could consider changing to Limited Companies, but with policies of successive Governments having made that switch fairly unattractive in terms of extra cost and bureaucracy, I'm not sure how much would be gained.

The key objective of the meeting however, was to reinforce agriculture’s position as offering solutions to the problems of the new 'big society'.

Opportunities for renewable energy and increased employment in the food processing and value adding sector, which already accounts for 20% of all manufacturing jobs, are real win wins for the future.

The key to all of this is viable rural businesses, not hampered by over regulation and administrative costs and restrictions.

I believe that on this key issue we are pushing at an already open door.