Defra minister says Welsh farmers don’t need to worry about IHT reforms

Farmers in Wales don’t need to worry about the potential impact of inheritance tax (IHT) reforms, the Welsh Affairs select committee inquiry into challenges and opportunities for farming Wales heard on Wednesday (16 July).

Giving evidence to committee, Defra farming minister Daniel Zeichner ruled out a Wales-specific IHT assessment, but stressed he understood the strength of feeling people had about the policy, though maintained Treasury figures were accurate.

However, Carmarthen MP Ann Davies disagreed and said 90% of farms in Wales would be negatively impacted by IHT reforms as most food-producing farms have a net worth in excess of the £1m threshold.

See also: Time running out for farmers in IHT battle

Impact assessment

Given the wider role farming families play in Wales, Mrs Davies said a Wales-specific impact assessment was overdue.

Mr Zeichner dismissed the call. “I would say that the Treasury’s figures and the way they have arrived at them are the only sure guide to the numbers that we can anticipate,” he told the meeting.

“I do not anticipate it being possible to do a geographically specific assessment.

“And I think the Treasury has done all the assessment it needs to assure itself and me that the numbers are correct.”

However, Brecon, Radnor and Cwm Tawe MP David Chadwick pushed the minister on what discussion he or Defra had with Treasury officials regarding the potential impact of the reforms.

Mr Zeichner told the committee that while this obviously came as a shock to some, the issue has been discussed over many years.

He understood people were anxious though gave reassurances that the majority of people needn’t be.

“I absolutely accept that people are anxious about this.

“I would reassure most people that they will not be affected by it,” he said.

‘Blood on the floor’

Defra officials were also accused of not fighting hard enough for the industry by committee members.

“I don’t think there’s anybody, irrespective of which part of the UK they reside or work, that feels that Defra ministers have gone in and left with, if I can use the phrase, ‘blood on the floor’ as a result of a punch-up with Treasury ministers,” said Simon Hoare, Conservative MP for North Dorset.

Responding, Mr Zeichner said the Defra secretary had won a remarkably good settlement for Defra and “there are better ways of doing politics than punch-ups.”