Up to 10% of UK farmers may abandon the industry this month as concerns over rising Capital Gains Tax and reduced subsidies mount ahead of the new government’s Autumn Budget, according to Mark Chatterton, Head of Agriculture at Duncan & Toplis accountancy and business advisers.
The looming financial pressures have left British agriculture at a critical crossroads, with many farmers contemplating selling their land or stepping back from active farming altogether.
Chatterton reports that a significant portion of his East Midlands client base is now considering drastic measures such as selling land, passing it on to the next generation, or contracting out to larger farming businesses. The sector, already grappling with poor harvests and shrinking financial support, is now facing the additional uncertainty of potential tax hikes.
“The future of British farming is at a critical crossroads,” Chatterton warns. “This Autumn’s Budget could deliver a devastating blow if Capital Gains Tax is hiked as expected. Farmers are already struggling after poor harvests and diminishing subsidies—another financial hit may push many out of the industry for good.”
Confidence within the agricultural sector is at an all-time low. According to DEFRA figures, nearly half of farmers fear for the future, and the National Farmers’ Union (NFU) reports that confidence is at its lowest level since records began. The Sustainable Farming Incentive, a key support program, is set to expire in three years, leaving many farmers without a clear financial safety net.
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