Taxation on land for the production of food should not be allowed. This misguided and ill-thought-out tax reform must be reversed to protect family farms and food production.
That was the message from NFU Cymru president Aled Jones at the union's annual conference held today (November 7).
Inheritance Tax
Mr Jones addressed farmers and supply chain representatives at the NFU Cymru Conference in Llandrindod Wells, Powys, many of whom he said were still ‘shocked and concerned' at the ‘family farm tax' changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) put forward by the UK Government.
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Speaking to members, Mr Jones said the changes in last week's Budget announcement were contrary to assurances given to farmers by senior figures in the Labour Party in the lead-up to this year's General Election.
He said: "There is no doubt that the decision by the Chancellor in last week's Budget to introduce a tax on the passing on of our family farms to the next generation will leave many farmers with neither the means, confidence nor the incentive to invest in the future of their business.
Family farms
"The changes announced are not only a threat to our family farm structure and our tenanted sector but also to our nation's food security. This from a Government which, just a few short months ago, told us that ‘food security is national security'."
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Amid the ongoing challenge to UK Government following its Budget announcement last week, NFU Cymru is also calling for the Welsh Government's upcoming draft Budget announcement to provide the sector with ‘some much-needed stability.'
Agriculture budget
Mr Jones said: "While the past week has been dominated by the Westminster Budget, our attention is also very much focused on December's draft Budget in Cardiff Bay.
"Last week's Budget announcement confirmed that the funding for agriculture from 2024-25 has now been baselined in each devolved Government's block grant, which we understand to mean that around £340 million should be forthcoming from the Treasury block grant to Welsh Government for agricultural support.
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Welsh Government
"In NFU Cymru's view, this very much puts the ball in the Welsh Government's court when it comes to setting its draft Budget next month, including, of course, the provision it makes for agricultural support. We now look to see the budget cuts made to the Rural Affairs budget last autumn reinstated in full, maintaining the Basic Payment Scheme payments at current levels for 2025, alongside a range of interventions to support the industry to meet the significant investment costs required to meet our environmental responsibilities."
