NFU seeks less red tape and fair tax treatment from Treasury

With the chancellor’s Autumn Statement approaching in November, the NFU has set out a number of key “asks” which it says are needed to provide greater certainty to help farmers run their businesses.

“Running a food and farming business right now is tough,” said NFU president Minette Batters.

“The overwhelming message I hear time and again is the need for certainty – whether that’s energy prices, the profitability of producing food in the UK, what financial support will be available, or emerging environmental markets.

“At this year’s Autumn Statement, the chancellor could really inject some much-needed stability and confidence into the UK’s food and farming sector.”

See also: Rural England Prosperity Fund: What is it and how to access it

In a letter to chancellor Jeremy Hunt, whose statement is due on 22 November, Mrs Batters highlights the pressure points on farming businesses, including mounting input costs, cuts to direct support payments and the failure of replacement schemes to fully compensate for this loss.

Specifically, the NFU is asking for:

• A Treasury review into long-term energy contracts and improved transparency in this market, making it easier for businesses to select which provider/contracts suit their needs
• Clarity on the tax treatment of future payments under Environmental Land Management and other green schemes – especially as to whether they would still qualify for agricultural property relief from inheritance tax
• Proper government regulation and oversight of emerging natural capital markets, such as carbon credits and biodiversity net gain
• An easing of the red tape surrounding the Making Tax Digital process – for example, removing the need for quarterly updates.

Additional points raised by the NFU include asks around the slurry infrastructure grant, capital allowances to incentivise low-carbon investments, and a further round of the Rural England Prosperity Fund, with a longer timeframe and expansion to all rural communities.

The Rural England Prosperity Fund was set up in 2022, providing £110m for local authorities to provide capital grants to businesses in rural areas, to create jobs, improve digital connectivity and promote economic growth.