First Minister Eluned Morgan recently faced scrutiny during a session of First Minister’s Questions in the Senedd on November 5, as the Welsh Conservatives accused Labour of betraying farmers with proposed changes to agricultural property relief following the Budget announcement. The controversial plan entails removing the Agricultural Property Relief inheritance tax exemption from farms valued over £1 million, sparking anger and fear among farmers and industry representatives. The move has been strongly condemned by organizations such as NFU Cymru, the Country Land and Business Association, and the Tenant Farmers Association.
During the session, Conservative group leader Andrew RT Davies criticized the Labour Party for what he described as broken promises and betrayal, referencing previous assurances from government officials that there were no plans to alter agricultural property relief. Responding to the criticism, First Minister Morgan stressed the importance of farmers’ contributions to Wales economically, socially, and environmentally. She cautioned against scaremongering and highlighted Treasury data indicating that only a small number of Welsh farmers would be affected by the inheritance tax changes.
Following the exchange in the Senedd, questions arose regarding the actual number of farmers that would be impacted by the proposed reforms. Despite claims of a “very small proportion” of farmers being affected, the Welsh Government was unable to provide specific figures, redirecting inquiries to the Treasury. The Treasury, in turn, stated that it did not possess regional data but anticipated around 2,000 estates being affected nationally from 2026-27, with approximately 500 of those estates claiming agricultural property relief.
The lack of concrete information on the exact impact of the changes has added to the uncertainty and concern within the farming community. Farmers and their representatives continue to voice their opposition to the reforms, expressing fears of the potential consequences for family farms and the broader agricultural sector in Wales. The debate surrounding agricultural property relief remains a contentious issue, underscoring the complexities and challenges faced by policymakers in balancing economic considerations with the interests of farmers and rural communities.
As discussions on the proposed changes to agricultural property relief continue, stakeholders await further clarity and insight into the potential implications for Welsh farmers. The ongoing debate highlights the need for transparency, dialogue, and careful consideration of the impacts of policy decisions on the agricultural industry and rural livelihoods in Wales.