THE Chancellor's budget has been described as a major blow to rural family businesses by the Country Land and Business Association (CLA).

Henry Robinson, president, said that the new National Living Wage would significantly inflate wage costs for farmers and other rural businesses, many of which would not benefit from the cut in corporation tax that was supposed to pay for it.

"We now need an urgent plan for how to ensure rural businesses are not left behind and jobs in rural communities are not put at risk," he said.

The Chancellor said the new compulsory National Living Wage would be paid for by decreases in corporation tax.

But Mr Robinson said: "There are hundreds of thousands of family businesses in rural England and Wales that are unincorporated and therefore are taxed on higher tax rates."

He also said the extension of Right to Buy to Housing Association tenants must exempt homes in rural communities to avoid a catastrophic drop in affordable homes for local people.

Rural landowners wanting to provide land for affordable housing would not do so if they knew the homes would eventually be sold in the open market and not kept for those in most need within their communities.

Mr Robinson said: "In order to retain and deliver new homes that are desperately needed in rural areas, Government needs to develop a rural-specific housing strategy that tackles the major barriers such as slow and inconsistent adoption of local plans.

"We will work with Government to ensure that well designed rural homes are delivered in the right places."