Wales' First Minister, Eluned Morgan, has called for a measured response from the farming community regarding recent changes to inheritance tax regulations. The announcement, made by Chancellor Rachel Reeves, has sparked considerable debate within the agricultural sector due to the removal of certain exemptions for farms. As Morgan marks her first 100 days in office, she emphasizes the importance of understanding the full impact before drawing conclusions.
In a recent appearance on BBC Radio 5 Live, Morgan addressed concerns surrounding the new inheritance tax structure. From April 2026, farms valued over £1 million will be subject to an effective tax rate of 20%, which is significantly lower than the standard rate of 40%. Morgan indicated that initial assessments suggest a “tiny proportion” of farms will be adversely affected.
“I think we should all calm down a bit until we have clarity on how many farms will be impacted,” Morgan stated, emphasizing ongoing efforts to analyze the data.
The National Farmers Union has labeled these changes as disastrous for family-owned farms, warning that many may need to sell land to meet tax obligations. The BBC Verify estimates that approximately 500 farms in the UK could be affected each year, although some estimates from the Liberal Democrats suggest that as many as 70,000 could potentially be impacted over time.
During her discussion with host Nicky Campbell, Morgan reiterated that the responsibility for these tax changes lies with the UK government. She noted existing relief measures where the first £1 million of a farm’s value is fully exempt from taxation and highlighted additional relief available for partners.
Aside from tax issues, Morgan defended other recent government policies during her radio appearance. She acknowledged public concerns regarding the controversial 20mph speed limit in urban areas but pointed out a significant reduction in accidents since its implementation. Furthermore, she recognized challenges within the NHS and announced an investment of £28 million aimed at reducing waiting times.
As Eluned Morgan navigates her early tenure amid criticism from opposition parties and campaigners, her government is also exploring new proposals for renewable energy initiatives in Wales. These developments signal an ongoing commitment to economic adaptation and sustainability while acknowledging existing challenges within key sectors like agriculture.
As discussions continue around inheritance tax and its implications for farmers, all eyes will remain on how both local and national governments respond to these pressing issues.
Chancellor Rachel Reeves has unveiled a comprehensive budget filled with various announcements relating to taxes, spending, wages, and pensions, which could have a direct impact on individuals and their finances.
Chancellor Rachel Reeves has unveiled a comprehensive Budget filled with significant announcements affecting taxes, spending, and pensions. Here’s how these changes may impact you directly.