24/03/2011

In a statement responding to the Chancellor’s budget announcement today, NFU President Peter Kendall said government must ensure it enables rural businesses to contribute to its drive for growth.

“As always, as we examine the details in the coming days, we will get a clearer idea of how this budget will help farming become more competitive and play its part in rebalancing the economy and driving growth,” said Mr Kendall.

“Overall, this is a budget that speaks much about supporting private sector growth across the UK. This is essential, but it is important that the government ensures its focus extends beyond urban and incorporated businesses, and enables rural businesses to contribute to this drive for growth. For instance, Local Enterprise Partnerships, which will play an important role in the new enterprise zones, must not want for rural representation, and food production as an industry sector must not be overlooked as new zones are rolled out.

“Some of the Chancellor’s specific announcements are to be welcomed. The cancellation of the fuel duty escalator, accompanied by the 1p cut, will help businesses across the economy, including the food and farming industries that are struggling to absorb rising fuel costs. We are also pleased to see the Government’s commitment to science maintained by a further £100 million in investment for new science facilities, including the Norwich Research Park for environmental and life sciences.

“In addition, the climate change levy discount for Climate Change Agreement participants will be increased from 65 per cent to 80 per cent from April 2013. This reversal of the previous administration’s announcement will be good news so long as the pig, poultry and horticulture sectors, which have worked hard to reduce their emissions, can continue to benefit from it. Further proposals to simplify the agreements will be published this summer.

“We are encouraged by the Chancellor’s support for the prioritisation of growth and the presumption in favour of sustainable development in planning decisions. It is now vital that this is backed by an assurance that strategically vital industries, such as food production, will also be recognised in planning priorities.”