UK farms are not the only businesses at serious risk from the proposed changes to Agricultural Property Relief and Business Property Relief, according to those gathered for a meeting of the Lincolnshire Agricultural Machinery Manufacturers Association.
Those are just worries in addition to other inflationary policies within last October’s Budget, including rises to employers’ National Insurance and the National Living Wage.
These concerns have been raised by the wider agri-food sector and allied industries are also questioning the impact of the Budget.
Speaking at the Lincolnshire Agricultural Machinery Manufacturers Association, NFU President Tom Bradshaw said: “Just as family farm businesses stand to be crippled by this tax, businesses within the wider agricultural space may soon find themselves under crushing pressure too.
“Farm businesses are often the bellwether of the rural economy and many have curtailed investment on their farms because any penny they had or could have borrowed will now have to go on saving the future of the farm.
“From builders, vets, and feed merchants, to fencers, machinery dealers, and tool manufacturers, there’s been talk of calls drying up and order books looking sparse for the year ahead as their customers – Britain’s farmers – face a cash flow and confidence crisis that’s been exacerbated by the family farm tax,” Tom explained.
“This shows the knock-on effect of poor policies, squeezed margins and a market not functioning properly.
“That is why we have chosen today to launch a pledge for businesses to sign to show they will join our fight to stop this unfair tax and secure the future of British family farming – the bedrock of the nation’s food and drink manufacturing industry – and those allied industries which rely on a thriving farming sector.”
