AIC cautions Budget tax hikes as a risk to agri-food industry inflation
The Agricultural Industries Confederation (AIC) has warned that tax rises announced in today's Budget will increase the burden on businesses and could fuel food price inflation while deterring investment.
In the Budget today (30 October), Chancellor Rachel Reeves MP said that employers’ National Insurance contributions would be increased to 15% and the threshold at which some businesses begin to pay this will be lowered.
AIC says this risks stifling productivity in the agricultural supply and wider agribusiness industries, whilst risking a rise in inflation.
AIC represents 230 Member businesses in the UK agricultural supply industry with a collective £17.8 billion turnover at farmgate.
AIC Member businesses provide UK farmers and growers with the animal feed, fertiliser, seed, crop protection products, trusted advice and quality services that are essential to producing food, as well as trading crops and commodities throughout the UK and worldwide.
Robert Sheasby, AIC's Chief Executive, said: "While AIC welcomes this Government's overarching ambition to drive economic growth throughout the UK, it is concerning to see the tax burden mounting at a time when agricultural supply businesses need the confidence to invest in infrastructure, technologies and systems to boost productivity and enhance sustainability for the future."
Read AIC's analysis of what the Budget means for agri-supply businesses by clicking below.
ENDS
About AIC
As the UK agricultural supply industry's leading trade association, the Agricultural Industries Confederation (AIC) represents businesses in key sectors within the supply chains that feed the nation.
Its Member businesses supply UK farmers and growers with the animal feed, fertiliser, seed, crop protection products, trusted advice and quality services that are essential to producing food, as well as trading crops and commodities across the globe.
Formed in October 2003 by a merger of three trade associations, today AIC has over 230 Members in the agri-supply trade and represents £17.8 billion* turnover at farmgate.
AIC works on behalf of its Members by lobbying policymakers and stakeholders, delivering information, providing trade assurance schemes, and offering technical support.
*According to a 2023 survey of AIC Members.
Press Contact
Oli Hill, Head of Communications, AIC
+44 (0)1733 385230
[email protected]