The Farmers’ Union of Wales has issued what it calls an unprecedented warning to MPs, urging them to rethink planned inheritance tax reforms that the union believes could threaten the future of Welsh family farms.
In the run-up to next week’s budget, FUW President Ian Rickman has written directly to every MP across the UK, setting out the union’s “grave concerns” about the changes, which are due to come into force in April 2026.
The intervention follows months of lobbying, with the FUW repeatedly warning that the proposals pose a long-term risk to family-run holdings and the wider rural economy.
Farmers and stakeholders across Wales have raised fears that the 'family farm tax', if introduced in their current form, would accelerate the loss of family farms and weaken the social fabric of rural communities.
Despite the UK government’s earlier insistence that a “vast majority” of Welsh farmers would be unaffected, FUW analysis suggests that up to 48% of Basic Payment Scheme recipients in Wales could fall within scope of the proposed changes.
With succession already one of the most fragile points in the life of a family farm, industry leaders say additional tax burdens could push many over the edge.
Those concerns were echoed in last week’s Welsh Affairs Committee report, which concluded that the reforms have created a “climate of uncertainty and confusion” for farmers.
The cross-party committee has called for a Wales-specific impact assessment before the changes are implemented, warning that the full implications for family farms and rural communities must be properly understood.
A separate report by the Environment, Food and Rural Affairs Committee recommended delaying final decisions on agricultural property relief and business property relief until October 2026, with implementation in April 2027.
EFRA MPs argued that a pause would allow time for meaningful consultation, robust affordability and impact assessments, and consideration of alternatives that avoid harming smaller family farms.
In his letter, Mr Rickman acknowledges pressure on public finances and the need for a fair tax system, but stresses that the proposed changes risk hitting the most vulnerable holdings hardest.
Many families, he warns, could face the grief of losing a loved one while also dealing with an additional tax burden that threatens the future of their businesses.
He said: “It is highly unusual for an FUW President to engage directly with elected representatives from across all UK nations — and perhaps unprecedented to write to every MP.
"However, we feel compelled to act at this eleventh hour, as we firmly believe that the UK government’s proposed changes to inheritance tax relief pose an existential threat to family farms in Wales and to the wider rural community.”
Mr Rickman said smaller family farms, often built over generations and run on tight margins, stood to lose the most. He warned that families could face “an unaffordable tax bill simply to inherit the family farm”, forcing them to sell essential assets and undermining long-term viability.
He noted that several alternative approaches have already been proposed and said the union would support “any measure that helps mitigate or prevent the irreversible damage” the reforms risk causing.
With the budget imminent, he urged MPs of all parties to raise the issue directly with Chancellor Rachel Reeves, saying the decisions taken now would shape the future of rural Wales.
Reeves is expected to confirm whether the reforms will proceed when she delivers the autumn budget on 26 November.
