Welsh farmers rally against IHT proposals

More than 200 tractors, trucks and other farming machinery gathered at the Royal Welsh Showground, as NFU Cymru led a powerful display of opposition to the UK government’s proposed changes to inheritance tax (IHT).

The event, which brought together farmers and rural businesses from across Mid-Wales on 21 February, served as a stark reminder of the far-reaching impact on Wales’ rural economy of what is being dubbed the “family farm tax”.

The UK government’s plans, announced in the Autumn Budget, could force farmers to sell their family farms to cover tax bills previously shielded by agricultural and business property relief.

See also: Welsh farms could make up 40% of IHT impact, report finds

Addressing the crowd, Liberal Democrat MP Alistair Carmichael, chairman of the cross-party Environment, Food and Rural Affairs (Efra) committee, highlighted the critical role farmers play in the UK’s food supply chain.

“Farmers are driving rural growth, and their work is essential in feeding the nation,” Mr Carmichael said. “But the damage done by the proposed tax changes is already evident in plummeting confidence and postponed investments within the farming sector.”

The MP for Orkney and Shetland referenced DVLA figures, analysed by the Agricultural Engineers Association, showing a 13% drop in new tractor registrations in 2024 compared with 2023, with the steepest decline seen in the most recent quarter.

In Wales, the fall in registrations was even more significant at 15.3%. Early data for this year shows a further 10% decline compared with January 2024.

Farming & allied industries have united in a display against inheritance tax proposals.

Over 200 tractors, lorries and trucks descended on the Royal Welsh Showground with the Chair of the EFRA Committee, Alistair Carmichael, also speaking at the event ➡️ https://t.co/JM1jkGrt6G pic.twitter.com/NiKpsEXOFM

— NFU Cymru 🚜 (@NFUCymru) February 21, 2025

Lib Dem MP David Chadwick, whose Brecon, Radnor & Cwm Tawe constituency is home to many farmers, challenged the government to reassess its proposals.

“Farming is the largest employer in my constituency, and these plans will devastate the rural economy,” he said. “The UK government must stop, consult, and truly understand the consequences of their actions.”

Reduced spending

NFU Cymru Brecon & Radnor county chairman Rob Powell warned that the 20% IHT levy on farm assets worth £1m or more from April 2026 would not only harm farmers but also reduce spending in the rural economy.

“The growth of our rural economy relies on profitable farming businesses that reinvest in the community,” Mr Powell said. “The government’s proposed changes put the future of Welsh farms at risk and, already, we’re seeing a knock-on effect on rural businesses that rely on farmers for their livelihoods.”

The rally followed the UK Treasury’s rejection of an industry-led solution that would have alleviated some of the tax burden while maintaining fiscal neutrality.

From left: NFU Cymru’s Abi Reader, Jane Dodds MS, David Chadwick MP, Alistair Carmichael MP and Rob Powell of NFU Cymru © NFU Cymru

Despite calls from industry experts, MPs and the independent Office for Budget Responsibility (OBR), Sir Keir Starmer’s government has vowed to press ahead with its plans.

In closing the event, NFU Cymru deputy president Abi Reader reiterated the union’s ongoing efforts to fight the proposals through its #StopTheFamilyFarmTax campaign.