NFU President Minette Batters said: “The most
significant decision today for British farmers is the
announcement to retain the relief on red diesel. This is
absolutely crucial and we are pleased to see the Chancellor has
acknowledged our concerns. Red diesel is the primary fuel to run
the majority of agricultural machinery and it is incredibly
important for the farm businesses that produce the nation’s high
quality and affordable food.
“Changes to this duty could have virtually doubled
fuel costs for farmers and with no current alternative fuel for
agricultural vehicles, this would have left farms immediately
uncompetitive with many other countries who continue to provide
lower fuel duty for their agricultural
industries.
“This lower fuel duty on red diesel recognises its
importance to farm businesses, their ability to produce food for
the nation and the fact this machinery is mainly used off-road on
farms.
“Many of these farm businesses have experienced the
wettest winter in recent memory and thousands still find
themselves underwater. We are really pleased to see the increase
of £5.2 billion into flood defences, particularly the £120
million for the repair of damage caused by this winter’s storms.
It’s crucial a significant chunk of this is spent on helping
repair defences in rural areas.
“I would urge the government to recognise and reward
farmland that is used to store floodwater. Any flood management
policy needs to reward farmers for this vital public
service.
“The weather this winter is yet another example of
how farmers are on the forefront of climate change and the NFU
has an ambitious goal for agriculture to reach net zero by 2040.
We look forward to seeing more detail on the new £640 million
nature for climate fund and what role is seen for farming and
food production within this, alongside playing its role for the
environment.
“The NFU called for an increase to the structure and
buildings allowance in its Budget submission and this increase
will deliver more effective tax relief for farm buildings. It
will go some way to supporting farms investing in modern,
efficient infrastructure which could help to improve productivity
and deliver our net zero ambition.
“We have seen in recent times a significant increase
in fly-tipping on farms. The NFU has been calling for the
government to invest in new approaches to tackling this crime and
the extra funding to tackle this blight on our countryside is
welcome.
“Finally, we recognise the government’s commitments
to helping small businesses with the impacts of the coronavirus.
The commitment to cover statutory sick pay costs, providing
business rates relief for many small businesses and mobilising
banks lending for SMEs will help to provide resilience and
support cash flow in these difficult
circumstances.”
