Countryside Alliance responds to Budget Statement 2024

Today (Wednesday 30 October 2024) the Chancellor of the Exchequer, Rachel Reeves MP, delivered the first Budget Statement of a Labour government in 14 years. Ahead of the Budget the Alliance wrote to the Chancellor setting out measures that we would have liked her to address, especially the question of fuel duty which has such an impact on those living in rural areas. It seems the Chancellor has heeded our concerns and there will be no change in fuel duty for a further year. This offers some relief to already struggling communities up and down the country.

Despite this positive news, the Alliance shares the concern of the NFU and CLA about the changes announced to agricultural property relief and business property relief which may threaten the long-term viability of the family farm. Young farmers taking over their parents’ farms already face significant challenges breaking even. The possibility of facing a 20% inheritance tax bill above the first £1 million in business value at the outset may prove one obstacle too many.

We also regret that the Chancellor has not taken up our suggestion to use powers returned to the UK following our departure from the EU to reduce the VAT rate on domestic heating oil to zero. Similarly, it is disappointing that the government continues with its intention to restrict eligibility for the Winter Fuel Payment without taking into consideration the higher heating costs faced by many living in rural properties. This can only exacerbate the rural premium- that is the added costs of living that rural residents must pay. We continue to argue that the government should look at assessing income independently of benefit eligibility and thus could take account of those residing in rural properties, or alternatively for properties off the gas grid, which would go some way to addressing the disparity in heating costs.

We have welcomed the announced protection for the Defra budget, particularly with the ongoing transition to the new payment schemes but would have liked to have seen some commitment to upgrading the national grid infrastructure which, especially in rural areas, is not in a state to support the transition to electric vehicles.

MPs will now debate the announced measures over the coming days and a full brief has been sent to all MPs which can be read here.