Farming union members from across Wales were at the Senedd for a debate on the UK Government’s controversial changes to Agricultural Property Relief (APR) on Wednesday, March 5,
The Farmers’ Union of Wales (FUW) and National Farmer Union Cymru members were in the Senedd, lobbying Welsh politicians to press for the UK Government to review their far-reaching changes.
The debate, tabled by Plaid Cymru, called on the Welsh Government to make representations to the UK Government to reconsider and pause the family farm tax until they have conducted a thorough consultation and economic review of its impact on working farms.
Despite support from the Welsh Conservatives and Welsh Liberal Democrats, the debate itself saw the Plaid Cymru motion narrowly voted down.
An amended motion supported by the Welsh Government was passed, which recognised the concerns expressed by Welsh farmers about changes to APR, and that Welsh Ministers would continue to advocate to the UK Government that the views of Welsh farmers be given full and proper consideration.
Ahead of the debate the FUW met with Welsh Conservatives rural affairs spokesperson, Peter Fox MS and Plaid Cymru’s Llyr Gruffydd MS, relaying the farming sectors’ concerns over the potential impact the Treasury’s reforms could have on family farms and domestic food production.
The Prime Minister had previously insisted a “vast majority” of farmers would not be affected by the changes, which are due to take effect from April 2026.
Meanwhile UK Treasury’s figures have previously claimed it expects around 500 estates across the UK to be affected by the changes each year.
However, previous research by industry bodies has drawn significant doubts over the Treasury’s figures.
The FUW’s own analysis suggests as many as 48% of Basic Payment Scheme (BPS) recipients in Wales could be affected by the changes, with the union warning the changes could have devastating impact on family farms and food production, as well as leading towards an increase in agricultural land being transferred into the ownership of remote corporate bodies and companies.
The FUW has previously put forward a range of proposals to the proposed changes to better safeguard family farms and the UK’s food security. – a stance it reiterated to the UK Government on several occasions, including a meeting with UK Treasury officials in London in late February.
These proposed changes include the principle that farming/agricultural assets should not be taxed when passed from one generation to another for farming themselves or letting to another farming family. However, if a generation decides to sell those assets, those assets should be taxed at the point of selling.
FUW President, Ian Rickman said: “Changes to APR have triggered significant anxiety within the farming sector in Wales during what is an incredibly difficult time for Welsh farmers, and the FUW has consistently called for the changes to be reviewed.
“Considering the continued frustrations within the farming sector that were powerfully articulated during this debate, there was an opportunity here for the Senedd to send a clear, united message to Westminster that this ill-thought-out policy must be paused and reconsidered.
“Disappointingly, this opportunity fell short, however as pressure continues to mount from the sector and from the government’s own back benches, the UK Treasury must now do the right thing and revisit these proposals to better safeguard our family farms and the future of Welsh agriculture.”
As well as opposition spokespersons, FUW President Ian Rickman and Deputy President, Dai Miles, also met Welsh Government’s Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies MS.
NFU Cymru President Mr Aled Jones said: “I am most grateful to Plaid Cymru for bringing forward the debate and articulating so clearly the industry’s concerns. I also thank the Welsh Conservatives and Welsh Liberal Democrats for their strong and impassioned contributions supporting the call for a pause, consultation and economic review of the family farm tax.
“The Chancellor’s proposals risk placing unsustainable tax liabilities on the backbone of our food system and by doing, so the UK Government risks dismantling a vital sector and causing immense damage to our rural economy, communities as well as our Welsh language and culture.
“Our own independent analysis has shown that around 75% of commercial family farms will potentially be impacted by this new tax charge. With the latest farm income figures showing average annual income on an upland cattle and sheep farm to be just £22,200, and £23,000 for lowland cattle and sheep farms, it is clear that tax charges perhaps running well into six figures would be completely unsustainable. Family farming businesses are therefore, typically, asset rich but cash poor, and without the reliefs currently in place these businesses – which are at the heart of our rural communities – will face the invidious prospect of either having to sell all or part of the farm, or to take out borrowings to meet inheritance tax charges.”
Mr Jones added: “The fact that so many farmers have journeyed to Cardiff today, in the middle of the busy lambing period, reflects the significant level of concern that exists out there over these proposals. It has been fantastic to see so many of our members speaking with their MSs around the debate, and I thank all those who have shared powerful messages with their elected members on this issue, as well as the media, both today and over the last few months.
“NFU Cymru has long advocated for policy decisions to be based on sound economic evidence and to support the long-term sustainability of our farming industry, and that remains our position. It therefore remains a deep source of frustration for me that the Treasury position has been resistant to any notion of pause and review of the family farm tax, or indeed any alternative proposals put forward by the industry.
“We see an important role for Welsh Government in helping amplify the Welsh farming industry’s calls for a pause and review of this Treasury policy, as well as consideration of our alternative proposals, and that is why we urged all MSs to back the Plaid Cymru motion.
“In our discussions with Welsh Government, we have also asked for a thorough examination of the impact of the inheritance tax changes on Welsh farming. We have also urged the Welsh Government to reassess the impact of its own current and future agricultural policies, and, if they go ahead, putting in the necessary adjustments and measures to mitigate the impact of the UK Government’s damaging proposals.”
