How the Government can start winning back the trust of the countryside at next week’s Budget - Johnnie Furse
There aren’t many who consider the relationship between government and countryside to be a positive one. Over the past two years, we have seen more than 27 damaging policies that have hammered rural Britain, from the Family Farm Tax to proposals to restrict game shooting and ban trail hunting.
A new Prime Minister and new government can distance themselves from the mistakes of the past. There is the chance for a rural reset.
But recent events haven’t cast the new administration's attitude to rural issues in the best light. The recent fiasco at Defra (Department for Environment Food and Rural Affairs) with the SFI (Sustainable Farming Incentive), that saw farmers miss out on vital government funding as support was drained within less than six hours, is far from a promising start.
Next week's Autumn Budget represents the perfect opportunity for the government to make its intentions clear. If Burnham wants to drive growth in all postcodes, both urban and rural, it’s time for him to pursue policies that help rural communities and businesses, not hinder them.
The Countryside Alliance have written to the Chancellor ahead of next week, identifying ten practical measures to take as a first step to helping rural growth and resetting the relationship between government and countryside.
The Family Farm Tax is something the Prime Minister has already said he wishes to revisit - and rightly so. While measures to raise the threshold for inheritance tax on farms were welcome, far too many farmers continue to suffer, unable to make important decisions about their livelihoods and future. Scrapping the tax completely would send a clear message that Burnham's government wishes to distance itself from the mistakes of the past.
Similarly, the recent debacle of the six-hour SFI sell-out which left thousands of farmers stuck without crucial funding is something the Chancellor must revisit should he wish to restore farmers’ confidence in the government. Nor should farmers who have diversified their businesses into holiday lets be facing yet more punishment.
It's not just farmers that have suffered. Rural businesses across the board have struggled with hikes to National Insurance; lowering the headline rate from 15 per cent or at the very least raising the Secondary Threshold back to the previous level of £9,100 would do a great deal to alleviate pressure. An extension of the 20 per cent business rates bill cut for pubs to rural hotels and restaurants would help keep these vital businesses vital afloat, while reducing VAT for the hospitality sector would help mitigate the impact of the newly announced Visitor Levy.
Another issue affecting everyone in the countryside is the cost of oil. More than 1.5 million UK homes, mostly rural, rely on heating oil. In the countryside, a car is not a luxury, it is a vital tool for most day-to-day tasks, and one that people are paying heavily for now with soaring fuel prices. Scrapping VAT on heating oil entirely would ensure rural households are not left out in the cold, while the temporary 5p fuel duty cut should be made permanent, and an emergency VAT reduction should be made.
The countryside is ready to work with the government. There is no miracle cure to the myriad of problems facing both the country and the countryside. But these first steps would show that the government wants to work with rural people.
Johnnie Furse is external affairs officer at the Countryside Alliance.