Farming chief makes ‘unprecedented’ plea to MPs ahead of Budget
This latest intervention follows months of lobbying by the FUW, which has consistently warned ministers and officials that the reforms represent an existential long-term threat to Welsh family farms and the wider rural economy.
Farmers and stakeholders across Wales have repeatedly raised fears that the proposals - if implemented in their current form - would accelerate the loss of family-run holdings and undermine the social fabric of rural communities.
Despite the UK Government’s earlier insistence that a "vast majority" of Welsh farmers would remain unaffected, previous analysis from the Farmers' Union of Wales (FUW) suggests up to 48% of Basic Payment Scheme (BPS) recipients in Wales could be affected by the inheritance tax proposals.
The publication of the Welsh Affairs Committee report last week found the proposed inheritance tax reforms have created a “climate of uncertainty and confusion” for farmers. The cross-party committee has called for a Wales-specific impact assessment before the changes are implemented in April 2026, highlighting the need to fully understand the potential effects on Welsh family farms and rural communities.
In addition, a report from the cross-party Environment, Food and Rural Affairs (EFRA) Committee published on 16 May 2025 has called on the Government to delay announcing its final reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) until October 2026, with a view to implementing them in April 2027. The EFRA MPs argue that a 12‑month pause would give the Government more time to conduct proper consultation, carry out robust impact and affordability assessments, and consider alternative approaches that avoid harming small, family farms.
In his letter, Mr Rickman recognises both the strain on the public purse and the need for a fair tax system, but stresses that smaller family farms are at risk of being worst-hit by the proposed changes. For many, this will mean facing the grief of a lost loved one while also contending with an additional tax burden that may threaten the viability of their family businesses.
Commenting, FUW President Ian Rickman said: “It is highly unusual for an FUW President to engage directly with elected representatives from across all UK nations - and perhaps unprecedented to write to every MP. However, we feel compelled to act at this eleventh hour, as we firmly believe that the UK Government’s proposed changes to inheritance tax relief pose an existential threat to family farms in Wales and to the wider rural community.
“The FUW fears that the hardest hit will be smaller family farms - holdings built through generations of hard work, often maintained on tight margins and supported by family members juggling jobs to keep their businesses going. These are the farms that form the backbone of rural Wales.
“Many of our members now worry that, upon their death, their loved ones could face an unaffordable tax bill simply to inherit the family farm. We fear that such families would be forced to sell essential assets to meet these new costs, undermining the viability of their businesses and threatening the future of Welsh family farming.
“The FUW notes that several credible alternatives to the Government’s current approach have already been proposed. In the present circumstances, we would be supportive of any measure that helps mitigate or prevent the irreversible damage that these inheritance tax changes risk inflicting on our rural communities.
“With the UK Budget imminent, we urge MPs from all parties to raise these concerns directly with the Chancellor and Treasury ministers. The decisions made in the coming days will determine whether family farms can continue to be passed on with confidence to the next generation.
“What happens next will have lasting consequences for the families and communities who depend on these farms.”
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