Mr Healey has extended the 3.7p-per-litre cut in red diesel duty until July 2027 and cut tariffs on kerosene and fertiliser which he said would help farmers.
But Alex Demetriou, founder of Regency Purchasing Group, which supports more than 12,000 leisure and hospitality sites across the UK, said the budget did not do nearly enough to support farmers who he described as: “a key cornerstone of our country and our food security.”
Many light-hearted headlines in the-up to the budget had some fun with news of an expected reduction in the cost of imported gherkins, but Mr Demetriou said there is a serious issue behind this.
“The Chancellor announced tariffs will be removed from more than 100 products but to me, it seems wrong that Britain is making it cheaper to buy imported produce than to buy food grown in our own soil.
“Why can’t the money being put into reducing tariffs not be invested instead in our farmers so they can reduce the costs of UK produced food items?
“If more people were encouraged to buy British, we would see a growth in demand which would increase volumes, drive efficiencies for producers and result in better prices for consumers. This will help secure the future of many small, independent businesses, as well as farmers.
“The Chancellor said tariff cuts on kerosene and fertiliser will support farmers, together with the extension to the cut in red diesel duty, but after hearing the phrase ‘food security is national security’, I think farmers had hoped for more support from the budget.
“Record-breaking hot spells, droughts and erratic rainfall have had a huge impact on crop yields, in terms of quality and quantity, and farmers’ already tight margins have also been affected by price rises in energy, feed and fertilisers.”
“Farmers have every right to feel that this budget does not do enough to support such a key cornerstone of our country and our food security.”
Mr Demetriou said the Chancellor’s decision to raise small business rate relief from £12,000 to £18,000 was a positive step, meaning around 70,000 additional small businesses, including pubs, cafes and restaurants would pay no business rates at all.
But any savings could easily be countered by the increases in minimum wage and national living wage.
Mr Demetriou added: “On average, each full-time member of staff on minimum wage will costs businesses an additional £1,200 each year. If a small business employs ten people, the benefit of the rates removal disappears.
“The whole food and beverage sector, from the farmers and producers to the hospitality businesses, can be forgiven for feeling that the budget could have done a lot more for them than it has.
“Despite a petition which attracted more than 400,000 signatures, there was no mention of a VAT cut for hospitality, which the sector has been calling for consistently ever since a temporary low rate came to an end after the Pandemic.
“Much more needs to be done to support a sector which makes a significant contribution to Britain’s economy.”
