Farming

Why farmers say inheritance tax changes do not go far enough

Published

2 weeks ago

December 29, 2025

FARMERS across Pembrokeshire say recent changes to inheritance tax rules have eased immediate pressure on family farms but insist the Government’s climbdown has not resolved deeper concerns about long-term security and confidence in the agricultural sector.

The UK Government has confirmed that the threshold for 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) will rise from £1 million to £2.5 million per individual. When combined with measures announced in last month’s Budget allowing unused reliefs to be transferred between spouses, the change could provide an effective allowance of up to £5 million for married farming couples. The reforms are due to take effect from April 6, 2026.

***Sam Kurtz, MS, pictured addressing a farmers’ protest in Llandudno last year***

While the move has been welcomed by farming organisations, many farmers argue it reduces the immediate risk without removing the underlying problem facing family farms, particularly in rural counties such as Pembrokeshire where land values have risen sharply while farm incomes remain under sustained pressure.

Local Senedd Member Sam Kurtz MS said the changes, while welcome, had not gone far enough to address the uncertainty facing farming families in Pembrokeshire. He said many farmers remained concerned about how land and assets would be valued under the new rules and warned that confidence had been shaken by the way the original proposals were introduced. Mr Kurtz added that long-term clarity was essential if family farms were to plan for succession and continue investing in their businesses.

The Farmers’ Union of Wales (FUW) said the revised thresholds would provide “much-needed breathing space” for many families, but warned that farming businesses remain vulnerable because they are often asset-rich but cash-poor. The union has argued that farms cannot be treated in the same way as other assets when inheritance tax policy is being designed.

The original proposals to reform inheritance tax earlier this year sparked widespread anxiety across Welsh agriculture, with fears that farms could be forced to sell land or break up long-established businesses to meet future tax liabilities. In Pembrokeshire, where many farms have been passed down through generations, industry figures said the uncertainty disrupted succession planning and caused families to delay investment decisions.

Some farmers who spoke to national media following the Government’s reversal described the decision as a welcome U-turn but said it came too late to undo the stress caused by the earlier proposals. One farmer said the change was “the best Christmas present for a lot of farmers” but criticised what he described as a lack of understanding shown toward rural communities during the original policy rollout.

Others involved in protests against the reforms said the episode had damaged trust, warning that uncertainty alone can be enough to undermine family farming businesses even if policies are later amended.

Political figures have also acknowledged that the debate is not settled. The chair of the Welsh Affairs Committee said the increase in thresholds was a positive step but called for a Wales-specific assessment of how the changes will affect farming communities, warning that further scrutiny is needed.

Farmers are now pressing for clearer guidance on how the new rules will work in practice, including how land and assets will be valued, how reliefs will apply to tenanted farms and family partnerships, and whether future governments could revisit the policy.

The FUW has said it will continue discussions with Ministers in the new year, arguing that restoring confidence is essential at a time when Welsh agriculture is already facing rising costs, policy change and wider economic uncertainty.

Industry representatives warn that without long-term stability, family farms in Pembrokeshire and across Wales may still struggle to plan confidently for the next generation, despite the Government’s partial reversal on inheritance tax.

Farming

FUW Farmhouse Breakfast Week returns for 2026

Published

12 hours ago

January 12, 2026

Tom Sinclair

THE FUW (Farmers Union of Wales) will begin 2026 on a charitable and community-focused note with the return of its annual Farmhouse Breakfast Week.

More than twenty breakfast events will take place across Wales, bringing farmers, families and rural communities together over locally produced food while raising funds for good causes. Last year’s initiative raised more than £21,000 for local and national charities, including over £13,500 for the FUW President’s chosen charity, the Wales Air Ambulance.

This year’s Farmhouse Breakfast Week will also shine a spotlight on the forthcoming Senedd election in May, with the FUW calling on the next Welsh Government to deliver stability, sustainability and long-term support for Welsh family farms.

A flagship breakfast event in Cardiff Bay, sponsored by Samuel Kurtz MS, will bring together politicians and key stakeholders to discuss the future of farming in Wales.

The week will also provide an opportunity for farmers to learn more about the Sustainable Farming Scheme (SFS), as well as the local expert support and services offered by the FUW as the scheme moves from design into delivery.

Ahead of the event, FUW President Ian Rickman said: “January can be a challenging time for farmers, with short days, cold weather and heavy workloads. Farmhouse Breakfast Week offers a welcome chance for farmers, friends and rural communities to come together, share the load and enjoy a hearty breakfast.

“With the Senedd election just months away, this year’s breakfasts will also provide an important platform to highlight the FUW’s key priorities — stability, sustainability and long-term support for Welsh family farms.

“There’s a warm welcome to everyone, and we’re looking forward to successful events in kitchens, community centres and cafés across Wales once again, celebrating the best of local produce while raising funds for vital charities, including the Wales Air Ambulance.”

The week is once again being supported by FUW Insurance Services Ltd, which was recently named among the Insurance Age Top 100 UK Brokers for 2025.

FUW Insurance Services provides tailored insurance solutions for agricultural, commercial and personal needs, from farm and smallholding cover to life, home and motor insurance. The company focuses on delivering personalised local service across Wales, with profits reinvested into supporting the Union’s work on behalf of Welsh farmers.

Chair of FUW Insurance Services, Ann Beynon OBE, said:
“We’re delighted to be supporting Farmhouse Breakfast Week once again. Rooted at the heart of rural communities, our business is proud to help bring people together to celebrate outstanding Welsh produce, enjoy the company of friends and neighbours, and highlight how our services support rural businesses.

“The week perfectly showcases the strength and spirit of rural Wales — all over a plate of breakfast. We’re incredibly grateful to the local producers and volunteers whose support makes these events possible year after year.”

Business

Major Pembrokeshire farm development back before planners after ‘cooling off’ period

Published

3 days ago

January 9, 2026

Bruce Sinclair - Local Democracy Reporter

A PREVIOUSLY backed call against officer recommendations for the relocation of a Pembrokeshire farm diversification scheme which packages and distributes specialist medical equipment across Europe will again be considered by councillors.

At the December meeting of Pembrokeshire County council’s planning committee, members backed a call by Mr Van Der Spoel for the relocation and expansion of an existing farm diversification business into an existing agricultural building at Castle Villa, Hayscastle despite an officer recommendation for refusal.

Back in July a similar application by Mr Van Der Spoel, through agent Harries Planning Design Management, was refused by planning officers.

A supporting statement for that application said the Dutch-born applicant, together with his wife and adult daughter ran the farm diversification business packing specialist medical supplies at their 135-acre sheep farm.

It added: “The business run from this site is FRIO ASTRID EURO Ltd, which has a franchise agreement with FRIO UK. This business has been run from Castle Villa since its incorporation in 1998. The business was initially run from the stable building on the farmyard at Castle Villa.

“The business set-up involves receiving stock from FRIO UK in Wolfscastle, packaging orders and distributing the stock to seven Western Europe countries.”

Wolfscastle-based FRIO produces the world’s first patented insulin cooling wallet which keeps insulin and other temperature-sensitive medicines cool and safe.

The scheme for the business, said to have outgrown its current site, was previously refused by county planners on grounds including a lack of “robust evidence” to prove it couldn’t be sited within a nearby settlement or an allocated employment site, such as Haverfordwest.

Since then, an application seeking to address the reasons for refusal was submitted, and, at the request of local member Cllr Mark Carter, a call for the scheme to be decided by full planning committee rather than delegated to officers was backed at the October meeting of Pembrokeshire County Council’s planning delegation panel.

The latest application is again, after its ‘minded to’ backing at the December meeting, recommended for refusal on similar grounds to previously at the January 13 planning meeting.

It has returned to the January committee for ratification after a ‘cooling off’ period, and, if backed then, will ultimately be decided by full council.

A report for members following the ‘minded to’ approval, warns: “Members should be aware that if they are ‘minded to’ approve the application on the basis of economic benefits and farm diversification, this is a consideration which can be applied to many other existing sites. This would have further consequences for the implementation of policies within the LDP and its delivery.”

It adds that, if it is backed again, it includes a condition, suggested by the agent, that: “Should the farm and business ever be operating by different individuals/companies, the use of this building by FRIO ASTRID must cease and be relocated should further planning permission not be obtained.

“This will be regulated by the submission of documents annually to demonstrate the farm and business remain under ownership by the same individual/company.”

Farming

Welsh Lib Dems urge extension of rural fuel duty relief to Wales

Published

3 days ago

January 9, 2026

Tom Sinclair

THE WELSH Liberal Democrats have called on the UK Government to extend the Rural Fuel Duty Relief scheme to rural parts of Wales, arguing that Welsh communities were excluded when the scheme was originally designed under a Conservative administration.

Speaking during a parliamentary debate this week, David Chadwick, the Welsh Liberal Democrats’ Westminster spokesperson, said the current structure of the scheme benefits rural areas in England and Scotland but leaves every part of rural Wales outside its scope.

Rural Fuel Duty Relief is designed to reduce fuel costs in sparsely populated areas, where motorists are estimated to spend around £800 more per year on fuel than those living in urban communities. Under the scheme, fuel retailers can claim a 5p-per-litre rebate on petrol and diesel, which is passed on to customers through lower prices at the pump.

Although Wales is among the most rural nations in the UK, no Welsh areas were included when the scheme was introduced more than a decade ago. As a result, drivers in rural Welsh communities continue to pay higher fuel prices than their counterparts in qualifying areas of England and Scotland.

The Welsh Liberal Democrats say this exclusion should now be addressed, and have proposed a consultation to determine which areas in Wales would qualify for relief. Counties including Powys, Ceredigion, Carmarthenshire and Gwynedd have been identified by the party as likely beneficiaries.

The party has also renewed calls for the introduction of a Pumpwatch scheme, which would allow motorists to easily compare fuel prices and guard against unfair pricing. A similar scheme operates in Northern Ireland, where fuel prices are often among the lowest in the UK. The Liberal Democrats say the previous Government committed to introducing Pumpwatch but did not implement it before the end of the last Parliament.

However, the UK Government has previously argued that fuel duty policy must balance support for rural motorists with wider fiscal pressures, and has pointed to the temporary 5p fuel duty cut and freeze on duty rates as measures intended to help drivers nationwide. Ministers have also highlighted devolved responsibilities in Wales, noting that transport policy and broader rural support are shared between Westminster and the Welsh Government.

Commenting, Mr Chadwick said:
“People in rural Wales are being clobbered by sky-high fuel costs, yet they were deliberately excluded from a scheme designed to help rural drivers elsewhere in the UK. That is fundamentally unfair.

“In Parliament this week, I challenged the Government on why rural communities in Wales are locked out of Rural Fuel Duty Relief while parts of England and Scotland benefit, purely because of the way the scheme was set up.

“Rural drivers should not be punished for where they live, and I will keep pressing for a fair deal for communities across rural Wales.”

The Herald has contacted the UK Government for comment on whether it plans to review the scope of the Rural Fuel Duty Relief scheme to include areas of Wales.