We are heading into an autumn dominated by headlines about the cost of living crisis, being driven by energy and food prices. We know now that the new prime minister will be Liz Truss.
In what looks like a swift reversal of many of the previous government’s policies, she has already indicated that she will reverse the National Insurance rise of 1.25%, and stick to the current corporation tax rate of 19%. There have also been reports that she is considering raising the basic rate tax threshold to £80,000, and cutting VAT.
Given the high cost of Covid support, and possible intervention in energy costs at eye watering levels of expenditure, presumably no government could balance the books solely by cutting taxes on income.
In the absence of spending cuts this leaves other taxes to replace any shortfall; will this bring the already talked about capital tax changes sharply into focus, with potentially significant implications for holders of agricultural land and property?
For farmers, the sound of deregulation might appear attractive, but as the architect of the trade deals with New Zealand and Australia, will it provide benefit in the long term?
Over the next few weeks we will learn much more about how Liz Truss will govern, rest assured Dodd & Co will keep you up to date of any changes which might impact your business, starting with the expected emergency budget shortly.
Click here to read other Autumn Farming Newsletter articles.
by Rob Hitch
