Wales' First Minister, Eluned Morgan, is urging a measured response to recent changes in inheritance tax that could impact agricultural businesses. The announcement by Chancellor Rachel Reeves to end certain exemptions for farms has stirred controversy within the agricultural sector. Morgan, reflecting on her initial 100 days in office during a BBC Radio 5 Live phone-in, indicated that the situation is still being assessed.
Morgan emphasized the need for patience as calculations are underway to determine the actual number of farms affected. She noted that initial assessments suggest only a small fraction of farms will be impacted by these tax reforms.
Starting April 2026, farms valued at over £1 million will incur an effective inheritance tax rate of 20%, significantly lower than the standard 40% rate. This shift has raised alarm among farmers, with the National Farmers Union labeling it “disastrous” for family-run operations. They warn that many farmers may be forced to sell land to meet tax obligations.
Morgan clarified that the UK government bears responsibility for these changes. She explained that relief applies fully to the first million and extends to an additional million if there are partners involved.
“The initial calculations show that only a small proportion of farmers in Wales will be affected by this,” Morgan stated, urging everyone to wait until more precise data is available.
According to BBC Verify, approximately 500 farms across the UK could face these tax implications annually. However, estimates from other sources vary widely, with some projections suggesting up to 70,000 farms could potentially be impacted over time.
Eluned Morgan stepped into her role during a tumultuous period for the Welsh government, taking over from Vaughan Gething amid leadership instability. During her recent phone-in, she also addressed various pressing issues including traffic safety and NHS waiting times. She defended the controversial 20 mph speed limit, citing its effectiveness in reducing accidents.
Regarding healthcare, Morgan acknowledged significant challenges ahead and announced an allocation of £28 million aimed at reducing long waiting times for patients.
As Wales navigates through these changes and challenges, the future remains uncertain yet critical for many sectors reliant on agriculture and public service efficiency. The First Minister’s calls for calm reflect a desire for thoughtful dialogue as stakeholders await clearer insights into how these policies will unfold.
Farmers Urged to Remain Calm Amid Inheritance Tax Changes Wales' First Minister, Eluned Morgan, has called for a measured response from the farming community regarding recent changes to inheritance tax regulations.
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.