I have recently taken over the Chair from Keith Phillips. I would like to thank him on behalf of the advisory group for all his work over the years. I would also like to take this opportunity to introduce myself. I’m a Partner at Greaves West & Ayre which has a large farming client base located in Northumberland, the Scottish Borders and East Lothian. We cover a diverse range of faming businesses, including those with beef and sheep enterprises. Being located 3 miles from the Scottish Border means we have the delight of dealing with two subsidy schemes which are increasingly different. Scottish farmers continue to benefit from the Basic Payment Scheme, much to the annoyance of those in England, who are rapidly seeing their Basic Payment Scheme payments disappear.

Since our last newsletter, we have of course seen a General Election. This brings with it uncertainty over what this will be mean for British farming. Last month saw the King’s Speech, in which the Labour Government set out more than 35 bills and draft bills. None were specifically related to farming but some key bills to highlight for the farming and rural community are noted below. Whilst it is not guaranteed these bills will become law, it is important to be aware that these are in the pipeline.

1. Great British Energy Bill – aims to set up Great British Energy to increase investment in renewable energy
2. Renters’ Rights Bill – aims to overhaul the private rental market by giving greater rights to tenants
3. Planning and Infrastructure Bill – aims to get ‘Britain building’ through, for example, planning reform
4. Employment Rights Bill – aims to ban practises such as ‘zero-hour’ contracts and enhance employment rights

Steve Reed, the new Defra secretary, has also unveiled the five key priorities for his department, which includes to ‘boost food security’. Hopefully, more detail will come to light which will give farming businesses certainty on how the Government will support them in the coming years.

In a recent statement, the Chancellor of the Exchequer appeared to pave the way for tax rises due to a £22bn shortfall in public finances. The Labour Manifesto stated that taxes for working people would not be raised, with no changes to income tax, national insurance or VAT. No change to corporation tax was also promised, so this would suggest capital gains tax (CGT) and inheritance tax (IHT) will come under scrutiny.

Recent conversations with clients have revolved around what potential changes could be made to CGT and IHT. Unfortunately, none of us have a crystal ball so only time will tell. 30 October will be a key date in many of our diaries. It has focused clients’ minds to make decisions, for example, to gift assets which have been in the offing for a while. I have also been keen to highlight to clients to not let the ‘tax tail wag the dog’. Once assets are gifted, you can’t ask for them back on 31 October, if the tax changes that are mooted don’t come to fruition. The Government wants to drive economic growth via private investment. Therefore, any tax changes will need to be finely balanced between raising tax revenues and encouraging private investment.

As a committee, we are keen to engage with our younger members. I’m keen to promote the vital role a Chartered Accountant has as a trusted advisor to the farming and rural community. Advising the farming community brings with it many challenges – it is not just about dealing with the ‘numbers’ but also advising on issues such as disputes between family members and debt restructuring.

Sharing knowledge within our community is essential. I, therefore, hope that many of you will be able to join us for our Farming and Rural Business Conference on 25 & 26 September. This will bring together an eclectic mix of speakers, with guidance on practical, technical and strategic issues.