The ‘huge disconnect' between politicians and businesses has been emphasised by Neil Wilson, executive director at the Institute of Auctioneers and Appraisers in Scotland (IAAS) following the new budget.

He pinpointed the impact that the increased minimum wage and employer national insurance contributions will have on a rural sector, already challenged by labour costs.

He said: “Unfortunately, IAAS members will be harshly penalised with little opportunity to share the burden with customers. This tax burden on top of the already significant non-domestic rates charges levied by the Scottish government will only mean Scottish auction markets will have less funds available to spend on infrastructure improvements and growing the sector.”

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The rural business sector provides vast employment to rural communities as well as providing opportunities to grow and develop skills within a competitive market, however, Mr Wilson fears these changes may prevent the industry from developing.

Mr Wilson has also expressed concern about potential changes to the way the agriculture budget is allocated in Scotland and, like many others, is eagerly awaiting further details on how these adjustments will be implemented.

“With changes likely to see funding no longer ring-fenced and subject to the Barnett Formula, we will be seeking assurances from the Scottish government that rural budgets will at least be protected and preferably enhanced in the future,” he continued.

Concluding, he lambasted the announcement as an ‘anti-rural budget littered with broken promises’ and called on politicians to engage with the rural sector to educate themselves on its importance to the national economy.

He said: “Politicians across Scotland and the UK must take steps to more actively engage with a wide range of rural businesses to improve their understanding of the importance of farming and agribusiness to rural communities across Scotland so that they can develop proactive policies and tax regimes to promote economic growth in these areas to protect and enhance the opportunities for future generations to prosper.”