UK budget response
Friday, 2 November, 2018
Responding to the UK budget, presented by UK Chancellor Philip Hammond earlier this week, UFU president Ivor Ferguson said some of the measures will help farmers and growers. In particular, the reinstatement of tax relief for farm buildings, which was included in the Structures and Buildings Allowance (SBA), would benefit many farm businesses. Mr Ferguson said, “While it doesn’t go as far as we would have liked, it is an attempt to provide some form of relief and will mean tax savings and help for farmers to invest in modern, efficient buildings.”
The new Annual Investment Allowance, which allows 100 per cent tax relief on plant and machinery and the increase in allowance from £200,000 to £1,000,000 from 1st January 2019 is a positive for farm businesses. However, the UFU is disappointed that it is time limited for two years.
The UFU also welcomed the rise in personal tax allowance and that tax on diesel and petrol remain frozen.
“We all know over the last two years farmers have faced challenging operating conditions. A long cold and wet winter followed by a late spring led to significant increase in costs to farm businesses. Many farm businesses are still working through the financial implications and will be looking at their own future budgets and cash flow implications. Any help to relieve this pressure is a positive.
“As we move closer to leaving the EU, farmers and growers still need to meet the expectations of the UK public, producing safe and affordable food, looking after our environment and valued countryside and contributing to productive and robust economic growth. The measures outlined in the budget, will go some of the way in helping us to do that,” said the UFU president.