THERE WAS good news for the majority of self-employed farmers this week with the Chancellor of the Exchequer’s u-turn on the controversial increase to their National Insurance contributions he included in last week's Budget – but there could still be a sting in the tail.

On the surface, the move will come as a huge relief to the farming sector, said NFU Mutual chartered financial planner Sean McCann: “These measures would have increased financial pressure on self-employed farmers, contractors and the many country people who are already facing a difficult period in the run-up to Brexit.”

However, Mr McCann warned that Chancellor Philip Hammond had already signalled that he would be looking to redress the gap in revenue caused by the u-turn, and could now seek other ways to increase taxation of small businesses – or reduce the benefits available to them.

He speculated:“It may be that Mr Hammond goes after tax reliefs available to farmers and businesses – such as agricultural property relief and business property relief, which he may think could be eroded without triggering the massive backlash that his measures to increase National Insurance for the self-employed generated.

“We’ll be watching the Chancellor’s autumn budget closely and alerting farmers to measures we feel could unfairly affect their finances.”

NFU Scotland chief executive Scott Walker said: “NFUS welcomes the decision by the Chancellor not to proceed with his proposed increase in National Insurance contributions from the self-employed.

“This will be welcomed by many farmers and others working in our rural areas as self-employed, particularly at a time when family finances remain stretched.

“While we have escaped this proposed tax increase, we need to identify just where the Chancellor will target next to recoup revenues," said Mr Walker. "It will be important, come the autumn statement, that instead of hitting our industry, he provides a valuable stimulus. The uncertain climate around Brexit means incentives and stability are what producers need to future-proof the farming sector.”