Making his budget announcement on Wednesday, Chancellor George Osborne revealed that the government Office for Budget Responsibility had revised down forecasts for growth for both the UK and global economies. The downward revision is fairly serious, and covers every year up to 2020.

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Headline announcements in the budget speech:

• 600,000 small businesses to be taken out of business rates.
• Freeze on fuel duty for sixth straight year
• Moves towards devolution - counties to elect mayors, more powers for Greater Manchester, all schools to be turned into academies
• Lifetime ISAs for the under 40s
• Income tax - personal allowance to rise to £11,500 from next April, higher tax threshold to rise to £45,000
• Sugar tax on fizzy drinks - manufacturers to choose whether or not consumers bear the burden

NFU response

Reacting on Wednesday, the NFU said the Chancellor’s continued focus on reducing corporation tax does nothing to help the 90% of UK farm businesses who are unincorporated and are struggling in the current economic climate. However, the union president did welcome measures on business rates,  cuts to capital gains tax and fuel duty.

NFU President Meurig Raymond said, “I had really hoped that the Chancellor would have recognised by now that all parts of the economy should benefit from tax simplification, as it is there is little support for capital investment on farm for buildings and reservoirs.”
 
Mr Raymond continued, “We are disappointed that nothing new was announced to boost the provision of superfast broadband to the last 5%, who are predominantly farmers and those living in rural communities. It’s particularly disappointing that the Chancellor has announced nothing to help mitigate the additional costs and pace of introducing the national living wage from April this year.  
 
“News that the country will invest £700 million more in its flood defences will be welcomed by the many farmers and their families who have faced devastating damage this winter. But we should be clear this is funded by an increase in insurance premiums for all.  I am also seeking assurance that the planned £40 million per year increase in maintenance expenditure will protect deserving rural communities as well as urban areas.”
 
He added, “We will study the implications of the proposed levy on sugary drinks and respond to the Government’s planned consultation, but it is reassuring that the Chancellor confirmed that neither milk based nor pure fruit juices will be included in the levy.”