Rushi Sunak's first budget - Woolley & Wallis' commentary

After watching the Budget announcement this lunchtime, as expected COVID – 19 dominated initial talk. This budget was not expected to be ground breaking with Chancellor Rishi Sunak delivering his first budget after only being in the role since February! But there are several key points to take away for Rural Businesses.

At first the scrapping of the “Diesel Tax Relief” looked like a killer blow for Farmers with the duty paid on red diesel being only 11p a rise to 58p in line with other sectors would have thrown cost control out of the window! Fortunately 2 sectors remain excluded from this; being Farmers and the rail operators.

The Environment featured heavily as expected with the announcement of the “Plastic Tax”, this could affect manufacturers supplying the agricultural industry as if the product is less than 30% recycled material a tax of £200/t is applied.  The big news is the “nature for climate fund” that has £640m pledged, this includes planting a forest bigger than Birmingham! It is proposed that 30,000 Ha of trees are to be planted, how and where this is delivered is yet to be seen!

Chris Powell, Associate in the Woolley & Wallis’ Marlborough office commented “A change that could see a big impact to rural business was the extension business rate cuts with the 100% discount being extended to hospitality businesses. It the rateable value is below £51,000 the business could be eligible to pay no business rates!”

He went on to say “This could include B&Bs, caravan parks, guest houses, sports clubs and gyms.”

Chris Powell can be contacted on 01672 515252 or c.powell@w-w.co.uk