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A pre-budget report for the rural economy

A pre-budget report for the rural economy Ahead of the Chancellor's report on Thursday (2 Dec) outlining the measures for what is likely to be a pre-election Budget, the Country Land & Business Association has set out its own demands for the rural economy. "The Chancellor has already hinted that the theme of his pre-budget report will be to create a 'British decade'. A vital part of Britain is our rural landscape and the rural economy which supports and manages that landscape," said Mark Hudson, CLA President.

"The Government cannot afford to ignore the link between a thriving rural economy and the provision of landscapes, the conservation of habitats and the very survival of rural communities. We are facing tough challenges: farm income is steadily declining and farmers are about to cope with a dramatic change in the way they are eligible for support.

"The engines of growth in the countryside are the many unincorporated businesses predominately managing the natural resources and habitats in our rural areas. Let's free up those businesses, let's support their development and the vital services they provide, let's give them the opportunity to generate jobs and incomes that will provide the desired economic, social and environmental benefits."

The CLA calls for:

- A revamped tax system that recognises that many rural businesses conduct a mixture of activities that are separated only by the current scheduler system of income tax.

- A coherent tax structure which encourages rather than impedes desired rural diversification and rural entrepreneurs.

- A fiscal recognition for expenditure within the rural areas that individuals and businesses incur (without subsidy) which goes toward the maintenance, management and improvement of the countryside the benefit of the whole community and the wider UK economy.

"Such an approach would underpin rural services and communities; create jobs and provide houses and capital for investment and buildings. It would be refreshing if this was a pre-budget report that reached the parts that other reports haven't - namely the sustainable development of our rural economy," concluded Mark Hudson.

1 December 2004

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