Yesterday’s Budget has prompted mixed reactions from the agricultural industry and related areas.
The National Farmers’ Union’s (NFU) initial response is a positive one, claiming a number of wins for NFU lobbying.
NFU deputy president Meurig Raymond said the NFU was pleased that the Chancellor had heeded the NFU’s call to extend Agricultural Property Relief to agricultural property in other EU states, following a request from the EU Commission.
Other key successes include: increases in the first-year rate of capital allowances for new investments; the creation of a new strategic investment fund for advanced technologies, including green technology and R&D; and proposals to deliver universal broadband access by 2012, which will benefit farmers and rural inhabitants.
Raymond said: “This budget sees some positive moves for farmers and growers, although the devil will be in the detail for some of the measures. To echo the Chancellor, agriculture can literally help ‘grow the UK economy out of recession’. Some of the measures announced today will help, although it is important that agriculture and horticulture are not over-looked, especially the role they can play in renewable energy.
“However there was a sting in the tail with an announcement that an additional £75 million of savings will be found within DEFRA, bringing total cuts to the department of £381m under the Comprehensive Spending Review."
The British Retail Consortium (BRC) was more sceptical, claiming the so-called ‘Budget for jobs’ has done little to help under-pressure retailers keep people in work.
Jane Milne, British Retail Consortium business director, said: “The Budget left retailers still facing most of the people and property costs that will prevent new investment and threaten the viability of retailers and their ability to create and sustain jobs.
“Few share the Chancellor’s optimism that the economy will be growing again by the end of this year. It is crucial retailers are spared new burdens and support for the sector isn’t ended prematurely.”
Meanwhile, the Association of Convenience Stores (ACS) has welcomed steps to support trade credit insurance in the Budget, but has warned that the Chancellor’s failure to act to prevent tax rises will hurt local shops.
ACS chief executive James Lowman said: “At a time when retailers need radical action to reduce costs, spur investment and create jobs, this Budget contains only crumbs of comfort. The failure to act on the looming threat of next year’s tax hikes in business rates and national insurance will do nothing to bolster local retailers who are crucial to economic recovery.”
The Freight Transport Association (FTA) was unequivocal in its putdown of the Chancellor’s decision to increase fuel duty from September, claiming it could be the “death knell” for parts of the logistics sector, leading to business closures and widespread job losses.
James Hookham, policy director for the FTA, said: “The logistics sector is the lifeblood of the UK economy, and rather than the transfusion we need, Alistair Darling has turned Dracula. Insolvency in the logistics sector has doubled in the last year and the number of HGV drivers looking for work has almost quadrupled. What more evidence does the government need that parts of the sector are on their knees?”
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