Welsh government urges Westminster to listen to IHT evidence

Deputy first minister of Wales Huw Irranca-Davies has urged the Treasury to engage with the farming industry over inheritance tax (IHT) concerns and listen to their evidence.

Speaking on the eve of the Royal Welsh Show, he said: “We’ve always made it very clear that we wanted the Treasury to not only meet with the unions and representatives from the farming communities, but also to engage with their evidence.”

Mr Irranca-Davies added that while the Treasury might not agree with the figures, it should listen.

“That’s still the message that we put to the UK government – listen to the voices that are coming forward, and focus on sustainability in all those terms of farming going forward.”

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

Aled Jones © NFU Cymru

In an effort to put further pressure on the Treasury, NFU Cymru president Aled Jones has also written to the prime minister Sir Keir Starmer urging changes to the UK government’s IHT proposals.

The letter was sent ahead of “legislation day”, on Monday 21 July, when the UK government publishes draft tax clauses to be included in the next Finance Bill.

It is anticipated that draft agricultural property relief (APR) legislation will be among the tax measures published by the UK government.

Time running out

On what could be a significant legislative landmark for the IHT reforms – and with time running out ahead of the APR changes coming into effect from April 2026 – Mr Jones called on the prime minister to mitigate against the devastating human impacts of the government’s policy.

“The reforms they are proposing will simply be unworkable for farming families,” he said.

“We don’t generate the income to pay the 20% (IHT). It has worried me more than anything, the impact particularly on the older generation, I feel this to the bone,” Mr Jones added.

Impact greater than predicted

In his letter to the prime minister, Mr Jones added that the impact on the industry will be far greater than the Treasury predicts.

“I know that no government would want to place anyone in the difficult and invidious position that many elderly farmers now find themselves in,” wrote Mr Jones

An opportunity still existed for the government to mitigate the effects of the policy, while still meeting the government’s aim of raising revenue, he added.