Autumn Budget 2024: How It Impacts Your Farm and Agribusiness
The Headlines
The Big Win: £5bn Support Package
From now until 2026, a major new funding package has been made available for British farming. While many are focused on the challenging aspects of the Budget, this £5 billion investment could offer significant opportunities for agri-businesses.
What: New funding for farm improvements
When: Starting now, through to 2026
Why: To help farms become more efficient and sustainable
How much: £5 billion total support package
Think new machinery, better systems, and smarter ways of working - all partially funded through government support.
The catch? You need to know how to access it.
Preston Waldon's agricultural team can:
✓ Review your eligibility
✓ Handle the paperwork
✓ Plan your improvements
✓ Maximise your funding
The Main Concern: Agricultural Property Relief (APR) Reforms
From April 2026, changes to inheritance tax will mean higher costs when passing down farms. Under the new rules, the first £1 million in farm and business assets will still be tax-free, but anything above that will only get 50% tax relief, instead of the full 100%.
Extension of Relief: From 6 April 2025, APR will extend to cover land managed under environmental agreements, allowing such land to qualify for tax relief.
Inheritance Tax (IHT) Relief: The current 100% relief will apply to the first £1 million of combined agricultural and business assets. Assets exceeding this threshold will be subject to 50% relief.
Frozen IHT Thresholds: The existing IHT thresholds are frozen until 2030, providing protection for family farms against high inheritance tax liabilities.
Review of Reliefs: The government intends to review existing IHT reliefs, including APR, to ensure they effectively support the agricultural sector.
Support for Sustainability: The budget also highlights investment in environmentally sustainable agricultural practices, linking land management to environmental protection.
We understand farming because its in our DNA. While we do not provide tax advice, our mission is to help you understand these changes and advocate for their removal by engaging directly with Defra, the Treasury, and the Business departments.
Book a Free Consultation with Us:
✓ We’ll explain how the APR changes affect your farming operations, breaking down the specifics in a way that’s easy to grasp.
✓ Our experienced team will represent your interests, actively engaging with government to push for the removal of these detrimental changes.
✓ We’ll provide insights on aligning your land management practices with government sustainability goals, helping to strengthen your farm’s future.
The Surprise Move: National Insurance Threshold Decrease
Starting 6 April 2025, employers will see a significant change as the threshold at which they begin paying National Insurance contributions will be slashed from £9,100 to just £5,000 per employee per year. Alongside this, the rate of employer National Insurance contributions will rise to 15%.
Increased Labour Costs: Higher employer NICs and a lower threshold could significantly raise overall payroll expenses.
Seasonal Workforce Strain: Higher costs may reduce the ability to hire seasonal workers, jeopardising timely harvests and productivity.
Investment Dilemma: With budgets stretched, agribusinesses might delay investments in modern equipment and technology that boost efficiency.
Profit Margin Pressure: The cost increase could erode profits, particularly for smaller farms, making them more vulnerable to market fluctuations.
Tailored HR Support: Our HR team is here to streamline your workforce management. We’ll create strategies that meet new regulations and empower your team. From easy hiring to effective training, we aim for a more engaged and motivated workforce.
Strong Advocacy: At Preston Waldon, we don’t just watch policy changes—we shape them. With our connections in agriculture and government, we make sure your needs are heard. Count on us to keep you informed and ready for what's next.
Risk Management: Let us tackle the tough compliance issues. We’ll help you develop a solid risk management plan so you can focus on growing your business.
Stay Connected: Connect with agricultural leaders and decision-makers. Working with us opens doors to valuable networking opportunities, allowing you to share insights with those who understand your challenges.
Please note that this information is intended for insight purposes only and should not be construed as professional advice. For tailored guidance on navigating these changes in the agricultural sector, please reach out to us for expert support and strategic solutions.