The NFU has welcomed chancellor Philip Hammond’s latest budget inclusions of new tax allowances on buildings and investment.
The government budget for next year will introduce a new Structures and Buildings Allowance for non residential structures, providing a tax break on farm infrastructure.
Annual Investment Allowance has also been increased five-fold to £1 million from £200k, albeit for two years only, which will encourage farmers and growers to invest in packhouses and machinery.
The allowance permits businesses to deduct the full value of certain equipment and items from a company’s profits before tax.
NFU president Minette Batters said: “The announcement that the Government will introduce a new Structures and Buildings Allowance for non-residential structures has gone some way to meet our call for tax relief on investment in farm infrastructure and will help farmers invest in modern, efficient buildings.
“The NFU also welcomes the increase to the Annual Investment Allowance to £1m but we are disappointed it is time-limited for two years.”
Batters also praised the government’s commitment to boosting internet connection in rural areas with £200m, adding: “It is vital that this is not a one-off investment and it must be part of a continued effort to deliver better connectivity for all rural businesses.”
Other food and agriculture organisations felt less enthused by a perceived lack of investment, as health, education, welfare and security took the bulk of the treasury’s expenditure.
The chancellor’s decision to introduce a new tax on plastic packaging which does not contain 30 per cent or more recyclable material was cautiously welcomed by environmental groups.
Friends of the Earth plastic campaigner Julian Kirby said: “A tax on virgin plastic packaging would be a welcome step – but if we’re going to stem the huge tide of plastic waste pouring into UK waterways every year, far bolder action is needed.”
Helen Dickinson OBE, Chief Executive of the British Retail Consortium said: “For this tax to make the difference that everyone wants to see, it is essential that the revenue raised is put back into recycling innovation rather than being locked away by the Treasury. Furthermore, Government must work with businesses to ensure the recycled plastic and recycling infrastructure is made available to support efforts to tackle plastic pollution.
“That is why retailers want to see reform of the recycling system. We need a producer responsibility system that incentives best practice - one that rewards retailers who use packaging that is easily recycled and penalises those that don’t change.”
On the subject of waste Charlotte Morton, chief executive of theAnaerobic Digestion & Bioresources Association (ADBA), urged the government to support local authorities in rolling out national food waste collection.
Morton said: “We were disappointed that the Budget did not confirm a commitment to introducing universal food waste collections in England or any further funding support to encourage local authorities to introduce these where they haven’t already done so.”
