Scottish Land & Estates comment on Spring Statement
Press ReleaseCommenting on the Chancellor’s Spring Statement, Scottish Land & Estates’ Head of Policy Stephen Young said:
“Rural communities are disproportionately impacted by fuel increases, and it is vital to ensure people can continue to live and work in rural Scotland.
“While the Chancellor’s cut to fuel duty is welcome, there is still huge pressure on the cost of living and working in rural Scotland. We are particularly concerned about the cost of rebated fuel for agriculture. While taxation on this fuel is lower, the price seems to have disproportionately risen in comparison to DERV, and we are concerned as agricultural businesses are seeing companies unable or unwilling to offer prices before delivery. This lack of transparency takes competition out of the market and could further increase costs.
“We are pleased to see the Chancellor abolish VAT for five years on energy efficiency measures such as solar panels, wind turbines, and heat pumps. This will help rural businesses at a time of soaring energy bills.
“People and businesses are facing a real cost of living crisis more broadly, with basics like food increasing in price. This highlights the importance of being able to grow more of our own high-quality, affordable food in this country – something rural Scotland does well – and the importance of having our food producers supported by governments in Holyrood and Westminster.”
There were other issues which will have an impact on businesses including:
- VAT reduced on energy efficiency measures such as solar panels & heat pumps to 5%.
- National Insurance threshold will rise to £12,570.
- While income tax will be cut in England, we are yet to see if Scot Gov will follow suit.
- Small Business employment allowance increased from £4,000 to £5,000.
The whole statement can be seen on the UK Government website.