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31/10/2024

Scottish Land And Estates Criticises Labour's Budget

Scottish Land and Estates (SLE) has expressed disappointment with the recent UK Budget, particularly its impact on rural communities.

SLE Chief Executive Sarah-Jane Laing said that the UK Budget "represents a double blow for Scotland's rural communities". Adding that despite repeated calls from the farming sector to retain Agricultural Property Relief for Inheritance Tax, Labour has pressed ahead with their plans to cut this relief for thousands of farming businesses across the UK.

The organisation believes that the removal of this tax relief will hinder best practices and make succession planning more difficult for many farming businesses.

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The SLE Chief Executive added: "On top of this, the Chancellor has ignored the findings of the Bew Review, which has enabled funding for agricultural support to be ring fenced in a separate block grant since 2021. Instead, agricultural funding will be linked to the Barnett Formula, which will incur a significant reduction in overall agricultural funding, with little sign from the Scottish Government that they will be able to make up the difference.

“Businesses have also been targeted with a sharp rise in employer National Insurance, which we know will only serve to disincentivise growth and the creation of new jobs.

"This Budget has failed to address the major concerns raised by rural stakeholders in the run up to the statement, and ignores the government’s own advice on agricultural funding. We are hugely concerned that the changes announced will have a damaging impact on rural businesses across Scotland, and would urge the UK Government to listen carefully to the concerns expressed by the rural sector in the wake of these announcements."

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