What the mini budget 2022 means for agriculture

23 September 2022

A picture of Minette Batters

The Chancellor of the Exchequer Kwasi Kwarteng has announced a new Growth Plan with a range of measures aimed at increasing economic growth. Our advisers have summarised the key announcements from the Chancellor's Growth Plan in a briefing for NFU members. 

The Chancellor of the Exchequer Kwasi Kwarteng unveiled his Growth Plan during his mini-budget statement on 23 September 2022. The plan aims to tackle energy costs for both businesses and households and makes a variety of tax cuts. 

More information can be found at: GOV.UK | Chancellor announces new Growth Plan with biggest package of tax cuts in generations

NFU President Minette Batters said: “British food and farming is worth more than £100 billion to the national economy and provides jobs for four million people. Investing in this sector to increase productivity and growth is in everyone’s interests.

Welcome news for investment decisions

“That is why the announcement that the annual investment allowance will remain permanently at £1 million will be welcome news to many farmers, enabling them to plan and make investment decisions at the earliest opportunity. We now need to see this extended to cover buildings and structures to encourage greater investment in farm infrastructure, and more detail is needed on other measures outlined in the budget, such as the impact of the new investment zones and planning relaxations on rural areas.

Frameworks must be developed with farmers

“We also welcome government plans to review frameworks for farming regulation, innovation, and investment. In order for these frameworks to succeed, they must be developed with farmers and we look forward to working with ministers to help ensure farm businesses are not only supported through the current economic challenges, but are able to make progressive decisions to boost growth and farming’s contribution to the nation.”

Our advisers have set out the essential information in a briefing for members: Download: Mini-Budget 2022 – key announcements

What's in our briefing?

  • Changes to income tax
  • Reversal of National Insurance contributions increase
  • Corporation Tax changes
  • Capital Allowances
  • Stamp Duty Land Tax changes
  • Investment Zones
  • Alcohol duty freeze

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