National Farmers’ Union says UK tax reform needed to incentivise investment in critical infrastructure
The NFU and the UK’s leading supermarkets have come together to call on the Chancellor to use the upcoming Budget to strengthen the nation’s food security.
The consortium warned in a joint letter that current tax rules were preventing UK growers from making vital long-term business decisions, with inadequate support for investments in essential farm infrastructure.
It urged the government to boost the Annual Investment Allowance to £5mn, while also extending it to cover farm buildings and other essential production assets.
The proposal is intended to incentivise investment in critical infrastructure like reservoirs, polytunnels and renewable energy to help boost productivity, resilience and sustainability throughout the supply chain.
“British farmers and growers want to invest in the future,” said NFU president Tom Bradshaw. “They want to increase productivity, improve efficiency, reduce environmental impacts and strengthen domestic food production. But too often the tax system works against these investments rather than supporting them.
“Extending the Annual Investment Allowance to include buildings and critical farm infrastructure would send a clear signal that the government does actually mean it when they say, ‘food security is national security’, that they support economic growth and back British farming.
“This is about strengthening the foundations of our food system and building resilience in the sector for decades to come.”
Jim Bligh, director of corporate affairs at the British Retail Consortium (BRC), commented: “Investing in British food production is an investment in the nation’s food security. Helping farmers improve productivity and resilience will strengthen domestic supply chains, support economic growth and help retailers keep high-quality British food on the shelves at prices customers can afford.”
NFU analysis last month showed that UK self-sufficiency had declined in 10 out of the 11 everyday food categories researched, with agri-food imports rising by 70 per cent in the last three decades.
