Reino Unido: Budget changes spark concerns over financial viability of UK potato farming

NFU Potato Policy Group chair and Horticulture & Potatoes Board vice chair, Tim Rooke, have highlighted the anxiety within the potato farming community following the Autumn Budget announcements. The primary concerns stem from alterations to Business Property Relief (BPR) and Agricultural Property Relief (APR), compounded by the increased employment costs due to National Insurance changes. Given the nature of potato farming as a capital-intensive operation, these adjustments pose a threat to the sector’s financial sustainability.

Potato cultivation demands substantial investment in machinery and infrastructure, including harvesters, tractors, and storage facilities. The potential financial burden introduced by the revised BPR could severely impact profitability, urging growers to reassess their financial planning and seek professional advice. Rooke emphasized, "Our sector is particularly exposed, and with even quite conservative figures, the payments required to cover the tax bills could easily wipe out any profitability for the years ahead."

Beyond BPR, the modifications to APR also present significant challenges, affecting land rental dynamics and potentially leading to a reduction in available land for potato cultivation due to sales by landlords. This situation is exacerbated by existing pressures such as pest management, competition for land use, and climatic variability. The budgetary changes, according to Rooke, undermine the sector’s investment capacity and productivity, further jeopardizing food security and the viability of British potato production.

In response to these concerns, Rooke calls for engagement with MPs to communicate the critical issues faced by the sector, emphasizing the importance of presenting factual evidence to illustrate the potential repercussions on individual businesses and the broader agricultural landscape.