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Farming

57% of Welsh people expect food prices to rise due to Family Farm Tax

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New research sparks concerns over food affordability

SHOCKING new research commissioned by the Liberal Democrats reveals that 58% of people in Wales anticipate food prices will rise due to the Family Farm Tax introduced in the recent Budget.

In response, the Liberal Democrats have tabled an amendment to reject the government’s Finance Bill, citing its damaging impact on family farms and wider rural communities.

Worrying changes in food habits

The research highlights alarming trends in how Welsh residents plan to cope with rising food costs. Nearly half (47%) of those expecting increases said they would switch to cheaper alternatives, while 32% revealed they would cut back on the amount of food they buy.

These changes could have significant health implications, with 19% of respondents admitting they are likely to buy less fresh fruit and vegetables if prices go up. The knock-on effect on small businesses is also evident, with 16% of respondents saying they would turn to larger supermarkets, posing further challenges for independent retailers already grappling with the rise in employers’ NIC contributions and the potential impact of the bus fare cap on foot traffic.

Liberal Democrats push for action

The Liberal Democrats are calling on the government to scrap the Family Farm Tax, arguing that its effects extend far beyond the farming sector. They warn of serious consequences for families and pensioners struggling to manage rising costs, urging support for their manifesto pledge to boost farming budgets by £1 billion, including £50 million annually for Wales.

“A tax that hits every family”

Welsh Liberal Democrat Deputy Leader David Chadwick MP said:
“I will fight this disastrous tax hike every step of the way and ensure Wales’ voices are heard in Westminster. The impact of this tax hike goes beyond farming communities—families and pensioners across Wales will be hit if food prices go up.

“The Budget has proven that the new Labour government does not understand rural communities or farmers and their vital role in food security, environmental protection, and the Welsh economy.

“We are urging the Labour government to axe the tax now. If not, the impact on already struggling communities will be catastrophic.”

Business

Pembrokeshire holiday lets near Iron Age farmstead approved

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A CALL to convert barns at a redundant north Pembrokeshire farm close to an Iron Age defended farmstead to holiday lets has been approved by county planners.

In an application before Pembrokeshire County Council planners, Ariana Grammaticas and Alewyn Muntingh sought permission for the conversion of two farm buildings at Pencraig Fawr, Llangolman, to three holiday lets.

A supporting statement through agent GMW Design said: “The existing farm is now redundant, the need for livestock and farming is no longer a requirement, my clients wish to utilise the existing farm buildings in a more efficient and long-term use to provide holiday accommodation.

“The buildings’ use for farming is redundant and it is considered that the building is of a style and scale that would lend itself to Holiday accommodation with little alteration to its current form. They have the benefit of having their own curtilage, with a little improvement to the site surrounding they lend themselves comfortably for conversion.

“The vision for the conversion proposals is a development that fits comfortably within the existing area without the need for reconstruction or external alteration to facilitate the conversions. The buildings are located off a former farmyard area and close to the existing farmhouse of Pencraig Fawr.”

Pencraig Fawr is some 250 metres from Pencraig-Fawr Camp, a scheduled ancient monument defended farmstead, which probably dates to the Iron Age period (c. 800 BC – AD 43), an officer report says.

It adds: “Cadw have raised no objection to the proposal with respect to any potential impact upon the heritage asset nor how it is experienced, advising that intervening topography, buildings and vegetation block all views between the monument and the buildings for which conversion is proposed. The access track is within the identified significant view and passes close to the asset.

“However, no changes are planned to this route and the proposal is unlikely to generate a significant amount of traffic. As such, the proposed development will not have any significant adverse impact upon on the way that the monument is experienced, understood, and appreciated and consequently will have no impact on the setting of scheduled monument.”

The application was conditionally approved by planners.

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Farming

Special farming role for senior Pembrokeshire councillor

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AN OFFICIAL special farming role for Pembrokeshire’s deputy leader is to be established following a call made to full council, the first time the council has had such a role for a senior member.

In a question to council leader Cllr Jon Harvey, heard at the December meeting of Pembrokeshire County Council’s full council meeting, Conservative group leader Cllr Di Clements asked: “With the recent changes in the budget from the UK Labour Government on Inheritance Tax and Agricultural Property Relief, many Pembrokeshire farmers are feeling concerned for the future of their family farms, many in Pembrokeshire which have been in the same family for generations.

“I have always found it disappointing that in all the years I have been a councillor, and the major contribution farming has to this county’s economic, cultural and environmental well-being, there has never been a Cabinet Member’s title with rural affairs or farming, or agriculture within it.

“To show that this council recognises the importance of agriculture, and the hundreds of millions of pounds generated by farming, will the Leader consider including it in one of the titles of his Cabinet Members’ portfolio?”

Responding, Cllr Harvey said: “I full share your perspective; it’s true this council has never had a Cabinet member with this role; however I can reconsider, I regard all aspects of rural life as vitally important.”

He told members farming and rural affairs came under the portfolio of the deputy leader [Cllr Paul Miller], adding: “we’re all aware of the changing aspects of rural life at the moment, we do have a rural affairs champion in Cllr Steve Alderman, but I’ve had a conversation with the deputy leader and agreed to review this title to reflect the importance of the role and will happily make an announcement in the next few days.”

Cllr Clements responded: “These words say a lot, it shows this council recognises the importance of the most constant and probably most important business in the county.”

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Farming

Call for Pembrokeshire to oppose farming inheritance tax withdrawn

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A CALL on Pembrokeshire County Council to oppose government changes to inheritance tax affecting family farms has been withdrawn, but its proposer hopes his motion will return to a future meeting.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

A Notice of Motion by Councillor Aled Thomas, ‘relating to Protecting British Family Farms and Preserving Rural Communities’ was to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting.

Cllr Thomas, who stood as a Conservative candidate for Ceredigion-Preseli in the 2024 general election, asked that: “Pembrokeshire County Council notes its concern to the proposed changes to inheritance tax announced by the Labour Government in the recent Autumn budget, which would scrap Agricultural Property Relief (APR).

“APR has been instrumental in allowing British family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship. This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”

It called on the council to resolve to “oppose the Labour Government’s changes to inheritance tax affecting family farms,” to “advocate for the exemption of family farms to preserve the UK’s food security, rural communities, environmental initiatives,” and to “commit to maintaining its county council farms portfolio, particularly to encourage younger and new generations of farmers into the industry”.

It finished: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed ‘family farm tax’.”

At the December 12 meeting Presiding Member Cllr Simon Hancock informed members the notice had been withdrawn from the meeting.

Speaking after the announcement, Cllr Thomas, himself a farmer, said: “There was a dispute whether I should have been allowed to submit it as I am a farmer, so I took advice from the monitoring officer that I should withdraw it until I can get a dispensation from the standards committee to speak on the matter.”

He said he hoped to get the motion resubmitted to be heard at the next council meeting.

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