Farmers to take inheritance tax fight to the Senedd

Emily Price

Farming families impacted by changes to inheritance tax will travel to the Senedd next week to urge MSs to support a motion calling for the policy to be reconsidered.

The controversial UK Government policy will see land and businesses worth more than £1 million face a 20% levy.

Ministers have insisted the changes – which are due to come into force in April 2026 – will not be reversed as raising revenue is required to stabilise the UK’s finances and fix creaking public services.

The proposals face fierce opposition within the sector, which says cash-poor, asset-rich farmers will be forced to sell their land, investment will stall, and the families of elderly or vulnerable farmers who do not have time for succession planning will be the most affected.

Intervention

The National Farmers’ Union (NFU) Cymru says the inheritance tax policy will have a “detrimental impact” on Wales’ family farms.

Plaid Cymru will lead a debate in the Senedd next Wednesday (March 5) as a last-ditch effort to persuade the Welsh Government to intervene with Labour colleagues in Westminster.

Representatives from NFU Cymru will be co-ordinating meetings between farming families and their elected representatives on the day of the Senedd debate to urge politicians from all parties to support the motion.

It calls on Welsh ministers to make representations to the UK Government that they reconsider and pause the inheritance tax policy until they have conducted a “thorough consultation and economic review” of its impact on working farms.

The debate will be led by Plaid Cymru’s Shadow Minister for Rural Affairs Llŷr Gruffydd.

‘Devastating’

He said: “This UK Government decision will have devastating consequences for farming families across Wales.

“Wales is not a nation of millionaire farmers. Our family farms operate on tight margins, and are cash-poor. Many are already in debt.

“These changes will result in families having to sell off land, cutting into their livelihoods and making their farms less viable for future generations.

“The policy is unforgiveable and utterly counter-productive at a time when we need to be strengthening our food security not undermining it.

“That’s why Plaid Cymru is calling on the Welsh Government to make the strongest possible case to their Labour colleagues in London to change course.”

NFU Cymru President Mr Aled Jones said: “If the UK Government’s planned inheritance tax changes go ahead then they will have an incredibly detrimental impact on Wales’s family farms and all of the businesses which in turn rely on them.

“By placing unsustainable tax liabilities on the backbone of our food system, the UK Government risks dismantling a vital sector and hollowing out our rural communities.

“I therefore very much welcome the fact that Plaid Cymru has secured this debate, it is vital that the impacts of these proposals on Wales are heard and properly considered here at the Senedd.”

The Welsh Government was invited to comment.