Family planting a new tree for the future
By policy, technical and communications, James McCluggage
Following the recent budget announcement, the deeper we look, the harder it is to understand its potential impact – not just on farming, but on the wider economy. This budget seems not only anti-farming, but anti-business in many ways.
Agricultural Property Relief
The figures used under the Agricultural Property Relief (APR) are deeply misleading. The government continues to push the “unicorn” figure of £3 million as a safety net, but this is far from realistic. For one, it assumes too many things which are unlikely. Moreover, the government is only referencing APR claims, not Business Property Relief (BPR) for stock and machinery – leading to distorted statistics. The result? A false narrative that 73% of farms will be unaffected by the changes. This is misleading at best.
Food security
The cumulative impact on UK food security could be severe. The government’s failure to recognise the realities of the agricultural sector threatens our ability to produce food sustainably. The minimum wage rise is another challenge. For instance, for the horticulture industry the increased employment costs due to higher National Insurance and wages are significant. These sectors, already operating on tight margins, will struggle to absorb these additional costs.
What about the indirect consequences? Retailers are forecasting that the budget will cost them an additional £100 million. So where will they find these savings? Most likely, it will come down the supply chain to the primary producers – the very farmers and growers who are already facing a squeeze.
This budget, in its current form, represents a serious challenge for UK farming and food production. The government appears taken aback by the backlash, but this story is far from over. The Ulster Farmers’ Union is determined to keep the pressure on, especially when it comes to highlighting the impact on family farms. Challenging these figures and pushing for more accurate representation of the true impact of the budget will be key in the coming months.
How can you help?
In these challenging times, we need to stand together and demand that the government understands the real, lasting impact on agriculture and food security. It’s time to get the facts straight and make sure farmers are not left behind.
