NFU: Farming unions call for government rethink over vehicle excise duty plans

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Friday, 05, Sep 2008 12:00

The leaders of the four UK farming unions have written to the Government urging it to reconsider its plans for VED re-banding and calling for a meeting to discuss other possibilities including a derogation for working farm vehicles.

The letter points out farmers have no option but to use 4x4s and similar vehicles for their work and under the Government’s proposals would face substantial increases in VED at a time when agricultural inputs have risen massively over the past year and farmers have no choice but to absorb the impact of higher costs and lower returns.

The letter says: “Although we welcome the Government’s renewed interest in food policy and food security, we now look to Government to translate this into a policy which encourages profitable and sustainable UK agriculture businesses which can provide positive solutions on the vital issues of food, energy, and the environment.

“Because of their power and configuration, 4x4s and larger vehicles are essential tools to the working farm, carrying out vital day to day jobs for which there is no practical alternative. Given the environmental rationale for the VED policy, it is an irony that many of these vehicles are also used directly in the management of our beautiful countryside with the benefits that brings for landscape and wildlife conservation, and for the tourism industry.”

The letter goes on to point out that farmers with a vehicle registered from March 2001 would be liable to pay the increased VED under the proposals.

“Punishing him financially for having an older vehicle with higher end emissions, and now with a depressed market value, is hardly going to assist him to purchase a lower emission replacement even if he could identify a model adequate to fulfil his business’s needs.

“It has been estimated that the number of vehicles used in agriculture is of the order of only 60,000. The revenue implications of a derogation for certain working vehicles are therefore modest. We appreciate that separating out working farm vehicles from other 4x4s is not without problems, but are confident that a fair and enforceable scheme can be developed given the political will to do so.”

Notes to editors:

The letter has been signed by the presidents of the four UK farming unions - Peter Kendall (NFU), Dai Davies (NFU Cymru), Jim McLaren (NFU Scotland) and Graham Furey (Ulster Farmers’ Union).

-ends-

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The NFU champions British farming and provides professional representation and services to its farmer and grower members.