The Autumn 2024 Budget delivered by the Chancellor, Rachel Reeves MP, once again demonstrates the huge disconnect that remains between politicians and the wider business community, specifically those involved in agribusinesses.
There is no doubt that the announcements around increased minimum wage and employers’ national insurance contributions place a monumental burden on rural businesses, who are already finding labour costs and availability challenging. Auction markets across Scotland provide significant employment in rural areas, with many career opportunities being available throughout these businesses.
Unfortunately, IAAS members will be harshly penalised with little opportunity to share the burden with customers. This tax burden on top of the already significant non-domestic rates charges levied by the Scottish Government will only mean Scottish auction markets will have less funds available to spend on infrastructure improvements and growing the sector.
Our customers are also going to see a huge impact with the proposed changes to inheritance tax thresholds. We can only hope the ‘consultation’ periods provide a dose of realism to the political masters who have dreamed up this damaging policy and they see the long term benefits to rural populations and food security of having a full relief system in place for agricultural assets.
We also wait for further detail on the proposed changes to the way the agriculture budget is allocated to Scotland. With changes likely to see funding no longer ring-fenced and subject to the Barnett Formula, we will be seeking assurances from the Scottish Government that rural budgets will at least be protected and preferably enhanced in the future.
This is most definitely an anti-rural business budget littered with broken promises from the UK Government. Politicians across Scotland and the rest of the UK MUST take steps to more actively engage with a wide range of rural businesses to improve their understanding of the importance of farming and agribusiness to rural communities across Scotland so that they can develop proactive policies and tax regimes to promote economic growth in these areas to protect and enhance the opportunities for future generations to prosper.