Union President highlights need to address serious policy flaws that are impacting agricultural and rural businesses and threatening national food security.
In delivering her Spring Statement today (Wednesday 26 March), The Chancellor underlined that the Government has ‘made the right decisions’ and is focussing on ‘economic growth’. However, NFU Scotland is highlighting its concerns that policy decisions including changes to Inheritance tax for farmers, National Insurance (NI) contributions, double-cab pick-ups, and the Carbon Border Adjustment Mechanism (CBAM) are collectively undermining confidence to invest in agricultural and rural businesses. These policies are adding significant cost burdens to farm businesses already operating on tight margins.
NFU Scotland President Andrew Connon stated: “We believe that the Government is not fully comprehending the serious negative impact their taxation proposals will have on growth and employment in the agricultural sector, the wider rural economy, and the nation’s food security. We’re already seeing huge concern among our members and their willingness to invest in their businesses. It’s more than just what happens on the farm – the thousands of businesses that rely on our farmers and crofters will be negatively impacted, many of which underpin fragile rural communities and boost biodiversity.
“Farmers are asset-rich and cash-poor. There is low profitability in the job, and the taxation proposals announced last October will simply force those who want to keep farming to downsize, reducing their profitability, hitting the rural economy, and further threatening our food security.
“Given the current state of global affairs, food security should be paramount. We therefore continue to urge the Chancellor to agree to discuss and consider an alternative to changes to Agricultural and Business Property Relief which would generate the required revenue to the Treasury without impacting the viability of family farms. We will not give up the fight with the Treasury on this. We have a long-term interest in delivering the best outcomes for the land, our members, and our rural communities and consumers.”
NFU Scotland is meeting with the other farming unions in Northern Ireland later this week and will be considering next steps. In addition, NFU Scotland will be hosting a webinar for its members to discuss the Government’s proposed changes to inheritance tax for farmers. This will take place on Wednesday 2 April at 7pm. President Andrew Connon and Jonnie Hall, Deputy CEO and Director of Policy, will provide details on the work that the Union has done so far on this issue and set out its planned next steps as it continues to lobby against the proposals and call for an alternative that won’t negatively impact family farms.
Members are invited to register for the webinar in advance using the following link: Webinar Registration - Zoom.
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Contact Diana McGowan on 07920 018619