Member of Parliament for Truro and Falmouth Sarah Newton has today welcomed the Chancellor’s announcement in the Budget of tax averaging for farmers.

Mrs Newton has held meetings with the Secretary of State for Environment, Food and Rural Affairs, Liz Truss MP and local farmers in her constituency, and recently also raised this issue with David Gauke MP, Exchequer Secretary for the Treasury in Parliament, when she asked.

“Under this Government, food and drink manufacturing is a great British success story. However, our dairy farmers are being badly affected by volatile global markets. Will the Financial Secretary look favourably on proposals to implement tax averaging reforms, such as those in Ireland, to help these essential producers who contribute so much to our rural economies?

Mr Gauke replied, “I am grateful to my hon. Friend for her question; I shall take it as a Budget representation. I am sure she will understand that I cannot say any more about it at this point, other than to thank her. She has been vigorous in putting forward that case.”

Commenting, Mrs Newton said, "I am pleased that in the Budget today the Chancellor confirmed that he has increased the period of time over which farmers can average their profits for income tax from two to five years from April 2016.

“I am delighted that this Government has listened to the plight of local dairy farmers. There is more to do to support out local farmers but along with increased powers for the Grocery Code Adjudicator, improved country of origin labelling and increased consumer support this is a welcome step in the right direction.”