The National Sheep Association (NSA) has warned that the autumn Budget gives sheep farmers little basis for increased investment, despite several measures that may reduce costs for some businesses.
The association said the package did not provide a clear long-term commitment to domestic farming and food production. Its concerns include the continuing uncertainty around changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), which took effect in April and remain a consideration for farming families planning succession.
Phil Stocker, chief executive of the NSA, said sheep prices were expected to remain strong, but that farmers were also facing high costs and uncertainty about the future direction of the sector. He argued that these conditions were discouraging businesses from investing while the national sheep flock continued to contract.
“There is little in today’s Budget for the UK’s sheep farmers to get excited about. Life will go on much as it has for some time.”
Measures welcomed by the NSA
The NSA identified a number of Budget measures that could provide some relief for individual businesses. These included reductions to fuel duty and red diesel, as well as the continuation of VAT relief on household electricity until July 2027.
In England, farms with tourism and leisure enterprises may also benefit from a higher threshold for small business rates relief. However, the association said these measures were limited in their effect and did not resolve the wider pressures facing sheep production or the farming businesses that support it.
| Measure | Area affected | Position reported by the NSA |
|---|---|---|
| Fuel duty and red diesel cuts | Farm businesses | Welcomed as a potential cost reduction |
| VAT relief on household electricity | Households | Continues until July 2027 |
| Higher small business rates relief threshold | English farms with tourism and leisure enterprises | May help some businesses |
| APR and BPR changes | Farming families planning succession | Continued uncertainty remains |
Concerns over succession and food security
For sheep farms, the association linked the tax position to decisions about succession and future investment. The NSA said the Budget had not reversed the APR and BPR changes, leaving farming families without the certainty they had sought when considering the transfer of businesses between generations.
Mr Stocker said the Budget did not sufficiently address the decline in the UK’s food security and self-sufficiency, or the pressures contributing to food inflation. He also said the sheep sector could contribute to food security, exports and rural employment if the conditions for investment were in place.
“These measures will help some individual businesses. They will do nothing for the viability of UK farming and food production.”
The NSA’s assessment is that the Budget offers limited help with immediate costs but does not provide the longer-term certainty it considers necessary to rebuild the national flock or strengthen the wider sheep supply chain.
