Oral Answers to Questions

Calum Kerr Excerpts

Thursday 17th March 2016 Commons Chamber

[Elizabeth Truss]

We are making progress. My hon. Friend the Minister of State, who has responsibility for farming, has recently had a meeting on the issue. We need common standards across Europe to make sure that we can freely trade with those other countries. As I have just said, that is particularly important for the sheep sector, 40% of whose products are exported to the EU.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

Even with the EU common agricultural policy payments, farmers are currently struggling because of supply chain issues and low commodity prices, and yesterday’s Budget offered them little help. As the National Farmers Union has pointed out, the

“continued focus on reducing corporation tax does nothing to help the 90% of UK farm businesses who are unincorporated”.

Will the Secretary of State meet the Chancellor to highlight those issues and the need for a fairer tax regime that treats incorporated and unincorporated businesses equally?

[Elizabeth Truss]

This April, farmers will be able to average their tax over five years, enabling them to deal with the volatile prices they currently face. We have also improved the capital allowances regime for farmers and farm businesses. We are not complacent: we continue to work in areas such as public procurement, with our Great British Food campaign, to make sure that we sell more British food here and overseas.