Chancellor Jeremy Hunt's announcements included an extension to agricultural property relief (APR), which was applauded by farming leaders.

It will be applied to land managed under the government’s Environmental Land Management schemes (ELMs) - a system of green incentives being introduced in place of EU subsidies which are being phased out after Brexit.

But Tom Bradshaw, president of the National Farmers' Union (NFU), said: “Where some of the headline announcements, such as an extension to APR and a reduction of National Insurance for the self-employed, could offer some benefits to agricultural businesses, the chancellor has missed an opportunity to deliver resilience for food producers.

“We welcome the extension of APR to land in ELM schemes, as it will remove a barrier of entry for a number of farm businesses and give farmers more choice about how to use their land.

"But the extension of this beyond ELMs may have an adverse impact on food production and farm tenancies and we will work with Treasury to assess those implications."

Mr Bradshaw said another "significant concern" is the announcement that the Furnished Holiday Lettings tax regime will be abolished from April 2025, eliminating the tax advantage for landlords who let out short-term furnished holiday properties over those who let out residential properties to longer-term tenants.

With agricultural businesses facing a "challenging economic backdrop" including high input costs and dwindling support payments, he said this could affect "an important source of diversification for farm businesses".

Mark Riches, acting East regional director for the Country Land and Business Association (CLA East), also welcomed the APR extension, but echoed the concern over holiday lets.

“Rather than helping the tourism sector by permanently reducing VAT to make rates internationally competitive, the chancellor is squeezing holiday let owners and stifling businesses that create jobs and support the rural economy," he said.

“The current tax rules for Furnished Holiday Lets provide a crucial support mechanism, strengthening the resilience and viability of many farms and rural businesses that in turn enables them to invest in their work looking after the environment and feeding the nation.

"Abolishing the tax relief shows a disregard for small rural businesses that often have narrow margins and face a constant need to reinvest."