Welsh Labour government rejects calls for IHT review

A motion presented by Plaid Cymru, urging the Welsh Labour government to request the UK government pause and review its inheritance tax plans, has been rejected.

It asked Westminster colleagues to reconsider and pause the “family farm tax” until they have conducted a thorough consultation and economic review of its impact on working farms.

In a vote in the Senedd on Wednesday 5 March, the motion lost by one vote (25 for and 26 against).

See also: Welsh farmers rally against IHT proposals

All Labour members of the Senedd (MSs), including deputy first minister Huw Irranca-Davies, voted against the proposal.

Speaking in the Senedd, Plaid Cymru’s rural affairs spokesperson, Llyr Gruffydd, who had hoped for unanimous support, said: “Those who know the fragilities of economics of farming know that these proposals will have very far-reaching consequences for farming families.

“Wales isn’t a nation of lavish living millionaire farmers. The Welsh government’s own farm business income statistics prove as much.”

He added that Plaid Cymru will continue to call on the Welsh government to make the strongest possible case to their Labour colleagues in London to change course.

Welsh Conservative shadow cabinet secretary for rural affairs, Peter Fox MS, who supported the motion, added: “Farmers across Wales are halting investments and face losing their livelihoods due to fears of devastating tax liabilities.

“Labour must rethink this death tax or risk our nation’s food security and the end of family farms across the country.”

NFU Cymru reaction

While decisions around inheritance tax policy are not devolved to Wales, NFU Cymru welcomed the airing of this issue in the Welsh Parliament.

NFU Cymru president Aled Jones, who watched the debate from the Senedd’s public gallery, said: “The fact that Wales’s national parliament was sufficiently concerned by these Treasury proposals to hold this debate sends out a clear and powerful message from Cardiff to London.

“I take this opportunity to urge the UK government to think once again about the significant and lasting damage their policy proposal will do.”