Britain’s farming industry is on the brink, with up to 10% of farmers considering abandoning the sector altogether due to fears of rising taxes and shrinking subsidies under the Labour government, a leading rural accountancy firm has warned.
Duncan & Toplis, a prominent name in rural finance, has sounded the alarm ahead of the government’s looming Autumn Budget.
The firm warns that a potential hike in Capital Gains Tax (CGT) and cuts to agricultural subsidies could spell disaster for the UK’s agricultural heartland.
Mark Chatterton, head of agriculture at Duncan & Toplis, claims that many farmers are weighing their options, from selling their land to passing it on to the next generation or partnering with larger businesses. “Farmers are already reeling from poor harvests and subsidy reductions—another financial blow could push many to throw in the towel,” Chatterton explained.
Confidence within the agricultural sector has plummeted to an all-time low, according to recent figures from the National Farmers Union (NFU), with nearly half of all farmers fearing for their future. Defra itself has echoed these concerns, warning that without immediate investment, the UK’s farming industry could face irreversible decline.
One lifeline for farmers, the Sustainable Farming Incentive (SFI), has been welcomed as a replacement for the dwindling Basic Payment Scheme (BPS), but even that lifeline is hanging by a thread, with guarantees only in place for another three years.
Chatterton added: “The government has spoken about the importance of agriculture for national security—I couldn’t agree more. But it’s time they put their money where their mouth is and provided farmers with the support they desperately need.”
Farmers in the Midlands, in particular, have begun reassessing their options, taking advantage of historically high land prices, while the threat of rising CGT has left many feeling as though they must act quickly before the window closes.
Speculation is rife that Chancellor Jeremy Hunt’s upcoming Budget could include CGT rising to a staggering 45%, while adjustments to Inheritance Tax could also drag more farmers into the scope of hefty tax bills.
As one of the country’s most crucial industries hangs in the balance, pressure is mounting on the government to match its words with firm, decisive action. Without it, Chatterton warns, the UK could soon face a collapse in agricultural production, hitting not just farmers, but consumers across the nation.
In a further blow to Labour’s agricultural policy, the Country Land and Business Association (CLA) is calling for the farming budget to be boosted to £3.8 billion by 2027, arguing that this increase is essential for achieving the government’s environmental goals and bolstering rural economic growth.
As tax reforms loom and British agriculture stands on the brink, the pressure is now on for the government to provide clear support in the upcoming Budget, or face losing one of the nation’s most vital industries.
Source: Farming UK
