The CLA View

Over the last few weeks there has been increasing speculation that Chancellor of the Exchequer, Rachel Reeves MP, will increase taxes in the upcoming Budget in order to fill the fiscal “black hole”. The question everyone is asking however is: which taxes will be targeted?

You can understand the nervousness from farmers and rural businesses given the fallout from the Budget last year is still being acutely felt by many rural businesses.

We continue to make the case against previous budgetary decisions made by the Government that are having detrimental impact on economic growth and jobs right now. As you would expect, this includes our repeated calls to rethink planned changes to inheritance tax.

Alongside the proposals to IHT, we’ve had a flurry of other ministerial announcements this year, such as the sudden closure of the Sustainable Farming Incentive, which have caused significant levels of uncertainty in the rural sector. These decisions have not created an environment conducive with business confidence and growth.

We are in regular contact with Defra Secretary of State Emma Reynolds and have reiterated the concerns of our membership who are a mix of farmers, landowners and rural businesses. Many of whom tell us they have halted investment plans due to the current economic climate. The last thing they need is another round of tax hikes in the upcoming Budget.

The rural economy is 18% less productive than the national average. Closing that gap could add £40bn to UK gross value added (GVA). But to do this, we need the government to listen to a sector that is growing food, enhancing the environment, providing housing, jobs, community facilities and much more. Why would anyone take decisions that would clearly have a damaging impact on this?

Family businesses are not faceless corporations – they invest locally, create jobs, and pay taxes year after year. But this requires long-term thinking, long term investment and long-term commitment.

We encourage all members to keep telling their stories, keep writing to MPs (especially if they are Labour), turning up at their surgeries, telling your community and the media. Tell your story about the brilliant work you are doing. The CLA can provide you with the data, facts and figures to include, but your personal stories matter and bring it to life.

The CLA will not give up lobbying against the inheritance tax proposals which will have a devastating impact on so many businesses, no matter how long it takes. However, with no change looking likely in the near future we urge members to take action and plan.

On December 9 and 10 we are running free roadshow events which are available to members and non-members. Please encourage others to come along, to get advice, and to get the most up to date information after the Budget.