The Tenant Farmers Association (TFA) has expressed deep
disappointment and frustration that the Government has failed to
take forward any of the changes proposed in its Budget
submission, leaving fundamental challenges facing the tenanted
farming sector unresolved.
TFA Chief Executive, George Dunn, said: This has been a
farm-blind Budget. It is deeply frustrating that the Government
has done nothing to implement the practical changes we proposed
to support secure tenancies, productive investment and resilient
farm businesses. This is another major missed opportunity for the
farming industry.
The lack of movement on sensible Inheritance Tax changes is
particularly regrettable. We asked for protection where the death
of a joint agricultural tenant leaves the surviving tenant with a
tax liability but no saleable capital asset. The survivor needs
to keep farming and not face a bill that business cannot fund,
said Mr Dunn.
We also proposed 100% Agricultural Property Relief for land let
under Agricultural Holdings Act tenancies and Farm Business
Tenancies of at least 10 years without scheduled break clauses.
That would give landlords a clear incentive to offer the security
tenants need to invest in buildings, drainage, soil health and
the long-term future of their businesses. Failing to act means
missing a practical opportunity to support food production,
environmental delivery and new entrants, said Mr Dunn.
On Stamp Duty Land Tax, the Government has agreed that people
paying rent on residential tenancies should not be liable for
SDLT on that rent. The same principle should apply to farm
tenants paying rent. Continuing to levy SDLT on agricultural
tenancies penalises longer agreements when we should be
encouraging them, said Mr Dunn.
The reduction in the fertiliser tariff and the increase in the
business-rates threshold are welcome. But they do not come close
to addressing the fundamental issues impacting the sector. These
measures are no substitute for a tax framework that supports
secure occupation, long-term investment and sustainable farming
businesses, said Mr Dunn.
The Government must stop overlooking the realities of tenant
farming and take forward the sensible reforms that the TFA has
proposed. Agriculture is central to food security, rural economic
growth and environmental recovery. A Budget that fails to address
the foundations of a resilient farming industry falls short of
what the nation needs, said Mr Dunn.
