Shrewsbury MP calls for changes to taxation to help dairy farmers

Mr Kawczynski said having a more stable billing structure would be a boost for farmers which have been hit with falling milk prices over the last few months.

He has signed a letter written on behalf of several MPs to Chancellor George Osborne which calls for changes to the taxation of dairy farmers.

He said: "This is such an important issue for Shrewsbury and Atcham as we have a long standing dairy industry that is a vital local employer.

"I have raised the alternative options available for taxing the dairy industry, and preferably switching to a five-year average which should provide a more stable billing structure.

"I am working hard to ensure that the dairy industry is preserved and continues to thrive in Shrewsbury and Atcham."

The letter said: "A number of us are members of the recently established Dairy All Party Parliamentary Group and represent a number of dairy farms and other linked industries that rely heavily on the success of the dairy industry.

"The dairy market is in dire straits at the moment, with the cost of milk plummeting, with some major supermarkets selling it for as little as 22p a pint.

"There are no profits to be had for dairy farmers, indeed, they are doing all that they can to stay afloat and in the business.

"The government could help more farmers to survive this downfall by altering the way that they are taxed.

"If we changed the taxation rules so that the amount that farmers are taxed by is a five-year average, as is done in Ireland, we may well see more farmers hold on to their businesses.

"They have recently had their January tax bill. Their next tax bill is at the end of June and many dairy farmers are wondering where the money to pay will come from."

National Farmers' Union regional director Rob Newbery said he was pleased with the support given by Mr Kawczynski.

"Daniel Kawczynski remains a robust advocate for Shropshire dairy farmers and those in his constituency and we are pleased to see his continued support, as we work to safeguard the sector at this difficult time," he said.

"The union has been busy working with processors and retailers over the past weeks and months, looking for ways to mitigate the impact of plummeting dairy commodity prices on Shropshire farmers' bottom line.

"Last week we were at an industry wide roundtable meeting hosted by Defra Secretary of State Elizabeth Truss to look at current issues in the British dairy sector and discussed ways of helping dairy farmers across the country who are struggling to cope with the impact of current market volatility.

"The Secretary of State made it clear that she will take forward many of our demands for immediate help such as the ability to stagger tax payments and support from banks.

"We continue to believe that government should also look at addressing other important areas including lifting the EU intervention price and profit averaging over a longer period.

"In the short term a working group will be convened to look at all aspects of milk contracts, including implementing the recommendations of the Voluntary Code review and the need for more trust and transparency when it comes to milk buyers' contracts with their suppliers."