The Ulster Farmers’ Union (UFU) has submitted its pre-Budget recommendations to HM Treasury, calling for a series of measures aimed at supporting Northern Ireland’s agricultural sector. Titled A Budget to Back Farming, the submission outlines a strategy intended to restore confidence, encourage investment, and protect the future of family-run farms.
UFU president John McLenaghan stated that the upcoming Budget represents an opportunity for the government to demonstrate its commitment to local food production and rural economies. He noted that while farm businesses are prepared to modernize and improve productivity, they are currently facing challenges related to rising costs, regulatory pressures, and tax changes.
A primary focus of the UFU submission is the reversal of changes to inheritance tax, specifically calling for the restoration of full Agricultural Property Relief and Business Property Relief for qualifying assets ahead of the planned implementation in April 2026. Mr. McLenaghan argued that these reforms risk undermining the investment and confidence necessary for the sector’s growth.
Beyond tax relief, the UFU has proposed several additional measures. These include retaining the temporary reduction in rebated diesel fuel duty, suspending the Carbon Border Adjustment Mechanism to assess its impact on agriculture, and enhancing tax protections for farm families affected by compulsory land purchases. The union also advocates for improvements to the Annual Investment Allowance and the Structures and Buildings Allowance to incentivize business modernization.
Furthermore, the UFU is requesting that Northern Ireland’s agriculture budget be index-linked and uprated, noting that its real-term value has declined by approximately one-third since 2020. The union also expressed support for a fully negotiated fiscal framework for Northern Ireland, as requested by local political parties.
The UFU plans to present these proposals to policymakers, including MPs and Peers, during upcoming party conferences and through direct engagement with the Secretary of State and other representatives in Westminster.
Article and image source: farminglife.com
