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Farming

Plaid Cymru demands pause to ‘destructive’ farm tax

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PLAID CYMRU urged the UK Government to pause and review planned changes to inheritance tax for farmers, warning the impact could be destructive in rural Wales.

Llŷr Gruffydd said the problem with the policy is it does not distinguish between millionaires buying land to avoid tax and family farms scraping a living from the land.

Raising concerns about far-reaching consequences, he told the Senedd: “Wales isn’t a nation of lavish-living millionaire farmers. Our family farms operate on tight margins and they’re cash poor; many live a hand-to-mouth existence and too many are in debt.”

Mr Gruffydd warned the changes, which will see 100% agricultural property relief to inheritance tax restricted to the first £1m from April, will force family farms to sell land.

The shadow rural affairs secretary said: “The policy is utterly counter-productive at a time, of course, when we need to be strengthening our food security – not undermining it.”

Recognising a need to crack down with multi-millionaires who buy up land for tax avoidance purposes, Mr Gruffydd warned working family farms are being caught in the cross-fire.

“This isn’t just bad news for farms,” he said. “It’s bad news for the wider food sector, for the wider rural economy and for jobs in the supply chain. It will reduce local economic activity … and, of course, it’ll further weaken the social fabric of our rural areas.”

Plaid Cymru MS Llyr Gruffydd
Plaid Cymru MS Llyr Gruffydd

Leading a debate on March 5, he pointed to proposals for an alternative “clawback” system which would levy inheritance tax if assets are sold by the beneficiary within seven years.

He explained clawback is used by other European countries to discourage buying farmland to minimise tax bills, adding that such a policy could raise 7% more for the UK Treasury.

“It feels very often like a sector under siege these days,” Mr Gruffydd said. “But this proposal on inheritance tax goes deeper … the one thing you cling onto is your ability to pass your farm on to the next generation, to give your children a livelihood.”

Peter Fox, the Conservatives’ shadow rural affairs secretary who is a retired farmer, backed calls to pause the “draconian” decision to remove agricultural property relief.

Conservative MS Peter Fox
Conservative MS Peter Fox

He said: “Let’s also be clear: average farm incomes are low, certainly nowhere near even half of what any of us get paid in this place.

“There’s no way the average farm can generate enough money to pay inheritance tax, even if spread over 10 years. The fact is farms would have to be broken up.”

His colleague Samuel Kurtz criticised the Welsh Government’s “delete-all” amendment to the motion which “rides roughshod over this Senedd in trying to gain a unified voice”.

Mr Kurtz, the son of a farmer, pointed out that Steve Reed, the UK rural affairs secretary, told farmers Labour had no plans to change inheritance tax rules before the election.

Welsh Lib Dem leader Jane Dodds said farmers and their families are frozen in fear as she accused the Labour UK Government of repeatedly picking on the little people.

Jane Dodds MS, leader of the Welsh Liberal Democrats
Jane Dodds MS, leader of the Welsh Liberal Democrats

“Families are genuinely worried about their futures,” she said. “Young people are concerned about whether they can carry on. This policy discriminates against the widowed, the widower, the terminally ill and older farmers.”

Pointing out that 43% of the sector speaks Welsh, Plaid Cymru’s Siân Gwenllian warned the change could have a disproportionate impact on the language.

Party leader Rhun ap Iorwerth, whose son is an agriculture student, warned the change will be a heavy blow to an industry already under so much pressure.

He said: “Welsh family farms need a Welsh Government that stands up for them and genuinely makes the case that this inheritance tax change should be delayed until its impact is honestly and carefully assessed.”

Huw Irranca-Davies, the deputy first minister, said the UK Government inherited a catastrophic financial situation, with a £20bn “blackhole”.

Mr Irranca-Davies, who is responsible for rural affairs in Wales, acknowledged significant concerns about the proposed changes to agricultural property relief which is not devolved.

Huw Irranca-Davies, Deputy First Minister and secretary for climate change and rural affairs
Huw Irranca-Davies, Deputy First Minister and secretary for climate change and rural affairs

He said: “Many farmers have met with me and shared their worries about passing on their farms to their children, reflecting a widespread anxiety amongst our rural areas.

“I have made and will continue to make strong representations to the UK Government about the need to understand and respond to the specific concerns of our Welsh farmers.”

Plaid Cymru’s motion was narrowly voted down, 26-25, before the Welsh Government’s amended version was agreed, 26-14 with 11 abstentions.

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

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CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

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Farming

Farmers Union of Wales Warns: Labour’s 5G Expansion Risks Rural Blackspots

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FUW Joins Landowners in Urgent Call to Pause Controversial Telecoms Reforms

THE FUW (Farmers’ Union of Wales) has warned that rural communities face worsening mobile blackspots and farmers risk losing essential income if the Labour Government expands a telecoms policy blamed for stalling Britain’s 5G rollout.

In a letter to Digital Economy Minister Liz Lloyd, the FUW aligns with landowners, investors, and property experts demanding a halt to Part 2 of the Product Security and Telecommunications Infrastructure (PSTI) Act 2022. Extending the 2017 Electronic Communications Code (ECC) would “entrench failure,” the group argues, sparking more stalled renewals, site losses, and legal battles just as Wales needs swifter rural connectivity.

The 2017 reforms empowered operators to cut mast rents—often by 90%—from hosts like farmers, councils, and NHS trusts. Far from boosting rollout, they’ve ignited over 1,000 tribunal cases since 2017, versus 33 in the prior three decades. Rural goodwill has eroded, with hosts now eyeing exits.

“Every lost mast isolates households, schools, and businesses,” the FUW states. “No public subsidy can fix this systemic damage.”

A survey of 559 hosts (via NFU, CLA, BPF) shows:

  • 35% considering full withdrawal.
  • 70% of expired lease holders facing operator legal threats.

Landowner Ted Hobbs in New Tredegar shares the pain: “My 1995 Vodafone lease was £3,500 yearly, renewed in 2010 at the same rate. It expired May 2025—now they demand a slash, backed by the Code. This is confiscation, not partnership.”

Labour’s push forward—despite earlier opposition and a critical consultation—ignores these red flags.

FUW President Ian Rickman adds: “Farmers hosted masts in good faith for rural connectivity. Punishing them with rent cuts sabotages Wales. Halt this now, restore trust, and incentivise real progress.”

The coalition urges ministers to reopen dialogue before deepening rural divides. Wales can’t afford more policy missteps.

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Business

Large new development at one of Pembrokeshire’s biggest dairy farms approved

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PLANS for a heifer accommodation building and associated works at one of Pembrokeshire’s largest dairy farms, with a milking herd of 2,000 cows, have been given the go-ahead.

In an application recommended for approval at the December 2 meeting of Pembrokeshire County Council’s planning committee, Hugh James of Langdon Mill Farms Ltd sought permission for a 160-metre-long heifer accommodation building, a slurry separation/dewatering building and associated yard areas at 1,215-hectare Langdon Mill Farm, near Jeffreyston, Kilgetty.

A supporting statement through agent Reading Agricultural Consultants said: “The holding currently has a milking herd of approximately 2,000 cows, which are housed indoors for the majority of the year, with dry cows and heifers grazed outdoors when weather and soil conditions permit.

“There has been significant investment in buildings and infrastructure at the farm over the last decade in respect of cattle accommodation, slurry storage, milking facilities, Anaerobic Digestion (AD) plant, feed storage. Recently a calf and weaned calf accommodation buildings were approved by Pembrokeshire County Council with construction almost complete.

“The unit is efficient, achieving yields of more than 10,000 litres/cow/year, with cows being milked three times/day in the 60-point rotary parlour. Langdon Mill Farm currently directly employs 21 full-time, and three part-time staff.  Of these, four live on site in the two dwellings opposite the farm, with the remaining staff living in the locality.”

It added: “Although the unit has previously purchased heifers to aid expansion, the farm now breeds most of its own replacements to improve genetics and to minimise the ongoing threat of bovine tuberculosis (bTB).

“Following the completion of the calf and weaned calf accommodation buildings, the farm will be rearing all of the cattle under seven months at Langdon Mill Farm, before being transported off site to be reared at three farms in the local area. At 22-months the in-calf heifers are brought back to the maternity building to calve and then are introduced into the milking herd.”

It said the proposed building would be used by heifers between the ages of 7-22 months, the siting  “directly influenced by the adjacent calf and weaned calf buildings, with livestock being moved from one building to the next as they get older”.

Approval was moved by Cllr Brian Hall, seconded by Cllr Danny Young, with Cllr John T Davies also stating his support.

“It’s common sense; the fact we approved a calf-rearing shed, it follows on you need a heifer rearing shed,” he said.

Cllr Davies later said the scheme would also support biodiversity, and, with a decline in milk prices, supporting the large-scale farm was about “safety in numbers”.

Chair Cllr Mark Carter said it was “a pleasure to be supporting the farming industry”.

Members unanimously supported the recommendation of approval.

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