Warning that Welsh farmers could turn to suicide ahead of UK Government’s farm inheritance tax

Dale Spridgeon – Local Democracy Reporter

Farmers could turn to suicide ahead of the introduction of the UK Government’s proposed farm inheritance tax, a Welsh council has been warned.

The claims were made during a notice of motion presented by Cllr Jina Gwyrfai, during Cyngor Gwynedd’s full council meeting last week.

Councillors were warned that farmers were in “despair” and families, workers and businesses “facing collapse” over proposed Westminster legislation, scheduled for April, 2026.

‘Direct threat’ 

The councillor who represents Yr Eifl  stated that the proposed Act was  “a direct threat,” to the livelihoods of generations of farming families in Gwynedd, and rural economy.

Highlighting that a “high percentage” of Gwynedd’s economy was linked to agriculture, she also stated the” stability” of the family farm was “a vital and invaluable contribution to the preservation of the Welsh language in our Welsh-speaking communities”.

In the October budget, it had been announced that inherited agricultural properties worth more than £1m would be subject to inheritance tax  at 20% from April, 2026.

The government said the changes would only affect the wealthiest 500 farms, but farming groups and Plaid Cymru politicians had argued a greater impact.

Cllr Gwyrfai cited figures that over three quarters of working farms across Wales were likely to be above the £1m threshold.

She said many farmers were feeling “hopeless” and read a statement from one farmer who had inherited a family farm, which had value in its equipment but “no money in the bank”.

“So many crises have hit the farming industry in recent years, Brexit, Covid, Blue Tongue, Bird Flu but the crisis here is even worse, especially for those older farmers, who have worked in the industry throughout their lives,” she said.

“This tax is causing despair, thinking about the future of the family farm, after a lifetime of work, it is causing some older farmers to wish to die before April, 2026 , in order to avoid the tax and retain the farm for the next generation

“One farmer in Barnsley has taken his own life because of tax worries and a farmer in Glamorgan with cancer has refused treatment so he will die before 2026.

“It’s heartbreaking,” she said.

Summary

Her notion of motion outlined its basis on three points: “Given that agriculture is one of Wales’ main industries, and that a high percentage of Gwynedd’s economy is linked to agriculture.

“The stability of the family farm is a vital and invaluable contribution to the preservation of the Welsh language in our Welsh-speaking communities.

“The agricultural industry in Wales is currently able to make a valuable contribution to the food stock of the ‘United Kingdom’ in an age of increasing uncertainty, although the stock is low.”

It stated: “This Council notes with regret that the Inheritance Tax Act poses a threat to the traditional farming unit, to the economy of the country and to the Welsh countryside, especially to the Welsh-speaking areas.

“At least two farmers are known to have committed suicide since the announcement of the Act and families and related local workers and businesses face collapse if the Act comes into effect in 2026.

“I therefore call on Cyngor Gwynedd to bring pressure to bear on the Welsh Government to pressurise the Westminster Government to recognise that the farming industry is crucial to the UK’s security strategy, and to exclude family farms that produce food from the new tax when it comes into force.”

Appeal

It also called for the council to appeal to the Welsh Government to commission research to assess the impact of the Act on the Welsh economy and Welsh-speaking communities and to implement “adequate mitigation measures,” and to protect the agricultural industry  “crucial to the future of our country’s rural communities”.

Gwynedd Councillor Delyth Lloyd Griffiths, who represents farmers living in Brithdir, Llanfachreth, Y Ganllwyd and Llanelltyd Ward,  raised and who owns a farm, keenly seconded the motion.

She called on the UK Government to “pause the plans  immediately” and for the Senedd to undertake an assessment over the “real effect “.

Cllr John Pughe Roberts added “this is a huge concern for many residents’ farms, the Welsh language and culture”.

In a vote, the motion was accepted, 44 in favour, one abstaining and none against.