Tax aid for foot and mouth victims
Farmers affected by the foot and mouth outbreak will be able to claim tax relief, it was confirmed today.
HM Revenue and Customs (HMRC) said it would help affected individuals struggling to meet their tax obligations as a result of the virus.
Farmers will be able to defer tax payments or may be able to arrange to pay outstanding tax in instalments.
HMRC is also considering whether to waive interest payment or overdue taxes and has agreed to suspend debt collection proceedings.
Kitty Ussher, economic secretary to the Treasury said: “We want to offer help to people who are being affected by the outbreak of foot and mouth disease and the restrictions on the movement of livestock.
“Some of them may be facing cash flow difficulties and our new helpline will be able to offer them fast, practical advice on their tax affairs.”
The foot and mouth outbreak in 2001 devastated the rural economy and the government is hoping to avoid a repeat following this latest outbreak.
Economists are already speculating the economic impact of the Surrey outbreak could be limited.
Howard Archer, chief economist at Global Insight explained: “Agriculture in total only accounts for around one per cent of UK GDP on the output side and so far there is only a very small area that seems to have been affected.
“Obviously, if the disease spreads markedly, the overall impact on the economy will increase, but even then it should still be pretty limited assuming that the lessons learned from six years ago prove effective.”
The Department for Environment, Food and Rural Affairs (Defra) has been concentrating its efforts on containing the virus.
The exclusion zone around the affected farms has been expanded to ten kilometres and all footpaths within it are closed.
A third herd of cattle showing signs of the virus have been culled within the protection zone.
Restrictions have been eased in areas outside the protection zone. Animals can now be moved for slaughter or if they die of natural causes.
Defra is also looking at how the virus was transferred after a Health and Safety Executive report pinpointed a link with the nearby Pirbright research site.
