The President of the Farmers’ Union of Wales (FUW), Ian Rickman, has responded following today’s UK Budget, which offers a partial but insufficient adjustment to the government’s damaging reforms to inheritance tax (IHT).
The FUW has repeatedly warned that the reforms, due to come into force next April, represent an existential long-term threat to Welsh family farms and the wider rural economy.
Throughout the year, the Union has undertaken extensive lobbying efforts, meeting with a wide range of MPs, Treasury officials, and other key decision-makers to press the case for protecting family farms.
In her Budget statement today, the Chancellor committed to making the Government’s proposed relief for the first £1 million of agricultural and business assets transferable between spouses – a measure repeatedly called for by the FUW.
However, she failed to change course on wider reforms to inheritance tax, meaning many farming families risk facing unaffordable tax bills to inherit the family business.
Commenting, FUW President Ian Rickman said: “Over the past year, the Farmers’ Union of Wales has repeatedly called on the UK Government to reconsider its approach to inheritance tax reform, and has offered practical and credible alternatives.
“From the outset, we have consistently advocated for all tax-free allowances to be fully transferable between spouses, as an absolute minimum measure to safeguard family farms and protect the wider rural economy from irreversible harm.
“The Chancellor’s commitment today to implement this change is therefore a step in the right direction, and one that will help ease the challenges of succession planning for many farming families.
“It is also encouraging to note that the lifetime gifting rules remain unchanged – a mechanism the Union had urged the Treasury to preserve.
“However, her decision to press ahead with the government’s broader proposals for inheritance tax reform remains deeply disappointing, if unsurprising. These changes still risk causing lasting damage to rural communities.
“It is not too late for MPs to support further changes to this unfair and poorly targeted policy. We will keep making the case in Westminster and beyond to protect the future of Welsh family farms. We would urge MPs from all parties to back any amendment to the Budget that would ensure family farms can be passed on with confidence to the next generation.”
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While it’s great to see some support for family farms, I can’t help but feel that the small concession in the UK Autumn Budget may not be enough to address the ongoing challenges these farms face. What are your thoughts on whether this budget actually makes a meaningful difference for farmers in Wales?