Securing the future of rural businesses in uncertain times

This year has presented the rural sector with challenge after challenge following the Labour Government’s disappointing Autumn 2024 Budget.

The changes made to Inheritance Tax (IHT), Agricultural Property Relief (APR) and Business Property Relief (BPR) had already created anxiety and a lack of confidence amongst farmers, land and business managers. To then have the closure of the Sustainable Farming Incentive (SFI) announced without warning, has knocked that confidence and trust even further.

At events that the team and I have attended, CLA members consistently tell us that IHT, BPR and APR are creating significant barriers for the continued growth and investment of their businesses.

As highlighted in the CLA’s 2019 Rural Powerhouse Campaign, the rural economy is 18% less productive than urban areas and closing that gap could add an estimated £40bn to UK Gross Added Value (GVA). With the lack of investment being made following the government’s announcements, the gap in rural productivity is only going to continue to get bigger – A clear knock on effect.

For the CLA, emphasising this gap and continuing to lobby against the changes that have been made, with little or no consultation, is a priority when speaking to the Treasury, Defra and MPs. Politicians must constantly be reminded that they need to listen to the sector.

At the end of the day, this is a sector which is putting food on the table, creating jobs and accommodation, enhancing their communities and environment and adding value to the rural sector.

The CLA regularly engages with Defra Secretary Emma Rynolds, who attended our recent Rural Business Conference and expressed her commitment to supporting rural growth through partnership.

As the upcoming budget draws near, there is growing uncertainty around which taxes might rise. Another increase could undermine trust in the Government further, and add more pressure to rural businesses.

Many members are looking at their rural businesses and having difficult discussions about continuity, profitability and succession planning.

It is important that these conversations are being had, and that business owners understand the impact that the tax system could have on them.

Succession planning is often something which is not discussed and can be considered a taboo subject.

We are running free and open to all Succession Planning Roadshows across the Midlands region in the New Year, where attendees will have the opportunity to hear from and ask questions of experts in their field. This will include tax updates and how the CLA can give support, business structures and legal essentials.

Find out more about our Succession Planning Roadshows.

Members can now look at Succession Insurance, a new option that offers a simple, cost-effective way to protect against inheritance tax on lifetime gifts.

If you would like to know more about the CLA’s Inheritance Tax Campaign, you can find out more here.

It is also worth mentioning that if you are struggling and have concerns about your mental health, there are lots of charities across the Midlands who can offer help. Some of these are listed below:

• The Farming Community Network
• The Addington Fund
• Royal Agricultural Benevolent Institution (RABI)

• Cheshire and the Wirral - Cheshire Agricultural Chaplaincy
• Derbyshire - Derbyshire Rural Chaplaincy
• The Peak District - The Farming Life Centre
• Herefordshire – Borderlands Rural Chaplaincy
• Herefordshire – Herefordshire Rural Hub
• Shropshire – Shropshire Rural Support
• Warwickshire – Warwickshire Rural Hub