HM Treasury has confirmed the date for Chancellor of the Exchequer Jeremy Hunt’s 2024 spring budget.
Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to parliament alongside his spring budget on March 6, 2024.
Hunt made his ‘autumn statement for growth’ on Wednesday, November 22.
The Farmers’ Union of Wales (FUW) said the autumn statement done “nothing to relieve the pressures on farming families”.
Hunt announced that the weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self-employed people earning more than £12,570 – will effectively be abolished, with no-one required to pay from April 2024.
The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.
The UK government said the cuts to Class 4 and Class 2 together amount to a tax cut of £350 a year for the average self-employed person on £28,200, with around two million individuals to benefit.
The FUW said, despite the recent drop in inflation rates, that farmers are yet to see this feed through to lower interest rates.
FUW group chief executive Guto Bebb said: “Whilst we fully understand the need to get inflation under control this should not be at the expense of farmers being able to recoup the cost of production.
“There is a lot of recent evidence that the fall in the price of dairy products is having a very real and detrimental impact upon farm gate prices.
“This is a rather disappointing fiscal statement from the UK government which does little to resolve the cost of living crisis and not much to instil confidence in the business community.”
Farm labour
Hunt also announced raises to the National Living Wage, which GSC Grays said could impact farm labour.
The UK government increased the National Minimum Wage rates for young people and apprentices.
There will be a 14.8% increase for people aged 18-20 to £8.60/hour. People aged 16-17 and apprentices will receive a 21.2% increase to £6.40/hour.
GSC Grays said Britain’s farming businesses are already facing significant financial pressures and could be “seriously impacted” by the decision to raise the minimum wage.
Head of farm business at GSC Grays, Robert Sullivan, said: “The rise in the minimum wage will increase costs at a time when farmers, especially those operating smaller farms, are battling to afford and retain the necessary labour.
“The minimum wage rise could potentially make other industries more attractive to work in, so the only option farmers have will be to increase wages still further.
“Farm labour is becoming a very scarce commodity in the industry, and there is a great deal of concern as to where we are going to find replacements for existing farmers and farm workers who are going to retire in the next 5-10 years.”
