A call on Pembrokeshire County Council to oppose the Labour Government’s changes to inheritance tax affecting family farms is to be heard today.

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’ is 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, asks 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 calls 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 finishes: “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’.”

Cllr Thomas’s notice of motion will be considered at the December 12 meeting.

Claims were recently made, and denied, that Mid and South Pembrokeshire MP Henry Tufnell may have had insider knowledge of changes to Agricultural Property Relief recently announced by the Chancellor, with inferences it led to his wealthy landowner parents shielding their estate.

A spokesman for the Mid and South Pembrokeshire Labour MP said: “As has been widely reported, it would seem that even Steve Reed, the Secretary of State for DEFRA, was not aware of the specific changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) before the Budget was announced.

“It would therefore be implausible to suggest that Henry – a backbench MP – would have this kind of knowledge prior to the Chancellor’s Budget announcements before they were made public.

“The actions taken by Henry’s parents were based on professional advice from qualified financial advisers, reflecting prudent and responsible management of their family affairs.

“This is something that every farmer in Pembrokeshire should consider in light of the Chancellor’s recent announcements, to ensure they are prepared for the evolving landscape of farming taxation.”