Autumn Budget 2024: A political call to arms
CLA Public Affairs Adviser Henry Welch provides a political review of the Autumn Budget and its falloutAlthough aspects of the Budget were incredibly concerning for rural communities, the CLA public affairs team is already working to make sure MPs and politicians are aware of the extensive impact it will have on the farming community.
Political analysis
With an unprecedented tax rise of £40bn this was a transformational Budget as Labour returned to a ‘tax and spend’ government. This is a complete U-turn following an election campaign where the government insisted that its manifesto was costed and that its election would not incur greater tax rises.
These tax increases were pitched as being solely aimed at employers and businesses. However, with the Chancellor admitting the employer National Insurance Contributions rise is likely to likely to cause lower wage growth, it is questionable if Labour can continue to claim that this will not affect workers. This offensive on business is likely to lead to a reduction in business investment and UK growth, one of Labour’s key missions.
It was also a Budget where the government’s indifference to rural areas was exposed. While in opposition, the Environment Secretary Steve Reed claimed that the government would “treat our rural communities with respect”, while the prime minister has claimed that Labour is now the party of the countryside. In addition, Steve Reed confirmed several times that Labour would maintain Agricultural Property Relief and Business Property Relief. With Labour abandoning this commitment, it is evident that its support for the countryside is fleeting.
Some measures, such as the continued freeze of fuel duty are welcome. However, Labour’s detachment from English and Welsh rural businesses was made evident by the word rural only being mentioned three times in the Chancellor’s speech – with one of these in reference to Northern Ireland. This will likely distress the swathe of rural Labour MPs who were elected in 2024, many of which have small majorities.
CLA work so far
The CLA public affairs team lobbied extensively before the election and will continue to work with government and opposition MPs to ensure that members’ concerns are heard.
Prior to the Budget, we provided briefings and met with numerous MPs of all parties. Our work was acknowledged in a debate on APR and BPR, where a treasury minister noted the CLA has “argued strongly” for the reliefs. We also lobbied the chancellor and environment secretary, highlighting opposition to any changes to the reliefs.
Immediately after the Budget, CLA President Victoria Vyvvan spoke to the Farming Minister Daniel Zeichner. Here, she underlined farmer’s indignation about the reform to inheritance tax reliefs and how changes to delinked payments will dramatically harm business confidence. We have also aired your anger in various media outlets, including the BBC, the Daily Mail and The Telegraph.
The CLA’s lobbying continues, and we have provided briefings to both the government and opposition parties on the damage that this Budget will cause. We are also meeting with Labour MPs in the coming days and weeks to ensure that they are working on behalf of their constituents.
A call to arms
This is where we need your help.
We have written a draft letter for members to send to their MPs, highlighting anxieties about the Budget and how changes to APR and BPR will directly affect your business. This is not solely for members and can be circulated to your family, friends and any concerned individuals you know.
You can access this letter to your local MP using the link below.