Responding to the budget, delivered by the Chancellor of the Exchequer this week, Mr Chestnutt said: “Like all sectors within the UK economy, the agri-food industry is being hit hard by inflationary pressures.
“There has been a serious increase in input costs and our farmers and growers are struggling to keep on top of the extra expense for feed, fertiliser and energy. “Within the budget, there is very little for agriculture.
“We’re disheartened that the chancellor has not made any reference to proposals to develop the UK’s export strategy to help our local farmers grow their markets and create more opportunity overseas.”
The UFU president continued: “The main offer in the budget for farmers is an extension to the annual investment allowance (AIA) at £1m until March 2023.
“The allowance offers 100 per cent relief against spending on plant and equipment in the year it is purchased.
“Plus, an extended opportunity for farming businesses to invest in equipment and vehicles, and obtain an immediate tax deduction. “Further measures that will benefit farming and rural businesses include the suspension of the planned rise in fuel duty, a familiar move that has been outlined in numerous budgets in the past.”