Farming and countryside organisations have set out their demands for Wednesday’s Budget, with the cost of fuel and the incentives for on-farm investment at the centre of their submissions to Chancellor John Healey.
The average price paid by UK farmers for red diesel has doubled in a year, from 66.9p to 113.4p a litre, according to Farmers Weekly’s fuel price tracker. Temporary cuts to both road fuel duty and red diesel duty are due to expire on 31 December 2026, with rates scheduled to rise from January.
The Countryside Alliance has asked the Chancellor to make the 5p-a-litre fuel duty cut permanent, temporarily reduce the 20% VAT rate on fuel and remove VAT on domestic heating oil, on which many off-grid rural homes depend. Chief executive Tim Bonner said the Budget was “a chance for the government to show it has heard the message from rural Britain”, Farmers Guide reported.
The National Farmers’ Union, in a joint letter with nine major retailers including Tesco, Sainsbury’s and Aldi, has asked for the Annual Investment Allowance to rise to £5mn and be extended to farm buildings, reservoirs, polytunnels and livestock housing. NFU president Tom Bradshaw said such a change “would send a clear signal”. The union cites its own analysis showing UK self-sufficiency has fallen in 10 of 11 everyday food categories.
The Country Land and Business Association continues to seek full reversal of the changes to agricultural and business property relief. President Gavin Lane said the Chancellor “should use this Budget to draw a line under the uncertainty”. The Tenant Farmers Association has proposed targeted reliefs for tenants, including 100% agricultural property relief on land let on tenancies of at least ten years.
Farming Minister Stephen Morgan said last week that the government’s position on inheritance tax was “now settled”, Farmers Guardian reported.
For rural households and businesses that rely on vehicles and heating oil, the January duty cliff edge is the most immediate cost decision facing the Chancellor on 28 October.
