Welsh Conservative Ministers have accused Welsh Labour of inconsistency after the UK Government moved to soften proposed inheritance tax changes affecting agricultural land, following sustained pressure from farmers and rural groups.
The revised plans increase the inheritance tax threshold on agricultural land from £1 million to £2.5 million, a change announced after months of campaigning by farming unions, rural businesses and landowners. Conservative MPs and Members of the Senedd (MSs) have opposed the policy since it was first proposed, arguing it would place additional pressure on family farms.
Welsh Conservative representatives say Welsh Labour MPs had previously supported the original policy in Westminster, including voting against Conservative efforts to scrap the changes entirely. They argue that Labour’s subsequent welcome for the revised threshold amounts to a change in position.
Commenting on the development, Samuel Kurtz, Welsh Conservative Shadow Cabinet Secretary for Rural Affairs, said:
“Let’s be clear: these changes happened only because of relentless pressure from farmers, farming unions and rural communities who stood together. Conservative MPs and MSs were proud to stand alongside them in their fight for fairness.
“Welsh Labour MPs sat on their hands, backed this tax raid when it mattered, and even voted against efforts to scrap it altogether. Farmers across Wales will not forget that. It is deeply hypocritical for them now to welcome changes they actively opposed.
“It is frankly shameful that Welsh Labour are attempting to take credit for reforms they resisted, which in any case are too little and too late for many family farms.”
Mr Kurtz said that while the higher threshold would provide some relief, it would not fully address concerns within the agricultural sector. He argued that farms in areas with higher land values but tight operating margins could still be affected by the tax.
“This fight is not over. Welsh Conservatives will continue to push for the full scrapping of this damaging tax. Farmers need a friend, and they will always have one in the Welsh Conservatives.”
The UK Government has said the revised threshold is intended to strike a balance between protecting family farms and maintaining the integrity of the inheritance tax system. However, the issue remains politically contentious, particularly in rural parts of Wales, where farming organisations continue to call for further changes or a complete reversal of the policy.