Yesterday’s Autumn Statement “fell short” of delivering measures that would allow farm businesses to maximise potential, the NFU has said.
Responding to chancellor’s Philip Hammond fiscal announcements, NFU director of policy Andrew Clark said planned reduction of corporation tax rates, while benefiting the supply chain, will do little to help the majority of farm businesses that are unincorporated. “Farm businesses need to be able to retain and invest profits in infrastructure and equipment to improve their productivity and the tax system needs to recognise and support this, as it does other parts of the economy,” he said.
“While there are some positives measures announced today, it is disappointing that the Chancellor’s Autumn Statement fell short of delivering measures that will enable our farm businesses to maximise their potential.'
Accelerating increases to the National Living Wage, which will rise to £7.50 for the over 25s in April 2017, will be difficult for employers, Clark said, adding: “We remain concerned about the impact on farm businesses.'
Clark said the new National Productivity Investment will add £23 billion into high -alue research, but it is “not clear where this will be spent”.
“The government must continue its support of the Agri-Tech Strategy and this new investment simply must include the agri-food sector,” he said.
“British farming will need a strong and functioning research and development pipeline to deliver solutions to both increase productivity and deliver environmental goods,” Clark said. “To achieve this ambition to be at the cutting edge of science and technology, the whole country must be digitally connected and be able to utilise technology.”
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