Osborne s Budget for growth ignores countryside calls for help on fuel prices

Osbornes Budget for growth ignores  countryside calls for help on fuel prices Country peoples pleas for help to over the impact of fuel prices were ignored by Chancellor George Osbornes Budget today, said Tim Price, rural affairs spokesperson at leading rural insurer NFU Mutual.

Analysing the Chancellors Budget for Growth speech, he said that cutting fuel excise duty by 1p a litre and dropping the planned 5p a litre excise increase did not go far enough to offset the impact of soaring fuel prices on farmers and rural communities.

While road fund tax on heavy goods vehicles has been frozen by the Chancellor, nothing has been done to help the thousands of farmers who rely on 4 x 4s and light commercial vehicles to run their businesses, said Tim.

Turning to other measures announced by the Chancellor, Sean McCann Personal finance specialist at NFU Mutual said there was good news for some farmers.

Reducing corporation tax will certainly benefit farmers running their businesses as companies and in Northern Ireland the announcement of consultation on  measures to align taxation rates  in the Irish Republic are very good news for business.

Farmers selling enterprises may be able to benefit from the doubling of Entrepreneurs Tax to 10m potentially reducing farming familys Capital Gains Tax bills by hundreds of thousands of pounds.

He also welcomed plans to consult on merging National Insurance and income tax collection.

Looking at income tax, he welcomed the 1,000 increase in personal tax allowances. However, he warned that because the basic income tax rate threshold  was being reduced, an extra 400,000 people were likely to be forced into the higher rate tax bracket.

News that a flat rate State pension – possibly of 140 a week – is being planned gives people more clarity about how much they will have to save themselves to provide a decent standard of living in retirement.

An interesting development on Inheritance Tax which will be of value to the many farmers who  bequest money to charity, is the announcement that if you donate 10% or more of your estate to charity, the rest of your estate will benefit from a reduced rate of 36% rather than the 40% full rate of inheritance tax.

Overall, todays Budget for Growth provided a number of positive measures for low and middle income earners and the measures to ease both the tax and admin burden on small businesses will be a boost to farmers and the rural economy but the Chancellors failure to address the hardship caused by fuel price hikes are a blow to the countryside.

About NFU Mutual:
NFU Mutual offers a wide range of products, including general insurance, life, pensions and investments. These products and services are delivered through the agency network, as well as through a direct sales and service centre.

With over 300 offices located in rural towns and villages throughout the UK, NFU Mutual has become part of the fabric of rural life and remains committed to serving the needs of people who visit, live or work in the countryside.

Your enquiry may result in a call from an NFU Mutual financial consultant, who advises on NFU Mutual products and services and in special circumstances those of other providers.

NFU Mutual is The National Farmers Union Mutual Insurance Society Limited (No. 111982). Registered in England. Registered Office: Tiddington Road, Stratford upon Avon, Warwickshire CV37 7BJ. A member of the Association of British Insurers.