Senedd Member Paul Davies has warned that the UK Government’s budget will have a catastrophic impact on the future of Pembrokeshire farming. Earlier this week, the Chancellor announced changes to agricultural property relief and from April 2026, inheritance tax will apply at an effective rate of 20% on all farm assets beyond a £1m threshold.
Mr Davies said, “It’s clear to me that this UK Government simply doesn’t understand or care about our farmers as this Budget threatens the future of family farms and will make producing food more expensive. Many farmers in Pembrokeshire and further afield will now face having to sell their land to pay inheritance taxes, putting the futures of many family farms and the people who farm them at risk.”
“This cruel move from the Chancellor undermines the next generation of farmers as they will face inheritance tax bills when family farms are passed from one generation to the next.”
“Farmers are already facing challenges dealing with excessive red tape, like the Welsh Government’s water pollution regulations and its flawed Sustainable Farming Scheme – and this latest announcement from the UK Government will be another crushing blow to the industry and to our rural communities.”
