NFU Cymru and the NFU have organised a mass lobby of MPs in response to what the organisations call the UK Government’s ‘misguided and ill-thought-out’ proposed reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR), which will have a devastating impact on Welsh family farms.
The mass lobby which will take place on November 19, at Church House in London will give farmers the opportunity to meet with and highlight to their MPs why changes announced in the Budget have caused so much worry and anguish in their farming communities.
The union has also written to the Secretary of State for Wales, seeking an urgent meeting following the Budget announcement.
NFU Cymru President Aled Jones said: “For decades APR and BPR have underpinned viable working farming businesses, of all shapes and sizes. NFU Cymru’s fear is that this week’s changes, if they go ahead as planned, will cause lasting damage to Welsh farming, leading to the break-up of family farms – farms that contribute to the nation’s food security, our rural communities, the economy and of course the Welsh language.
“Returns from farming are typically extremely modest. This means that the vast majority of farm owners would be unable to meet an inheritance tax charge, leaving them with little choice but to take on additional borrowings or to sell off part of the farm in order to meet the charge, which may well render the farm unviable as a business. So, whilst a family farm may look like a valuable asset on paper, that doesn’t mean those who work it are wealthy or are able to meet a large tax bill.”
NFU Cymru has also rebutted the assertion that most family farms would not be captured by the proposed new tax.
Senedd Member for Carmarthen West and South Pembrokeshire, Welsh Conservative Samuel Kurtz took Pembrokeshire’s Labour MP Henry Tufnell to task following the Chancellor’s budget announcement that the Labour Government will slash Agricultural Property Relief (APR)—a move the local MP had promised would not happen.
During the recent General Election, the Labour candidate publicly assured farmers at a husting event hosted by NFU Cymru, the Farmers’ Union of Wales, and Pembrokeshire Young Farmers’ Club, that APR would remain unchanged under a Labour Government.
However, the budget revealed a reversal on this promise, with the Chancellor announcing cuts to APR, potentially jeopardising thousands of family farms by increasing the Inheritance Tax burden.
Mr Kurtz commented: “Labour’s Budget was a string of broken promises, but none will be as harmful to hardworking farmers as their cut to Agricultural Property Relief.
“For the Labour candidate to assure farmers at the husting that no changes would be made to APR, and then have Labour go back on that, shows that the party will say whatever it takes to win votes.
“Trust in politicians is at an all-time low, and this U-turns only helps feed that mistrust. Decisions like this threaten the future of family farms and undermine the promises made to the communities Labour claims to represent.”