Welsh First Minister defends UK Government's controversial changes to inheritance tax

Emily Price

The First Minister of Wales has defended the UK Government's controversial changes to inheritance tax as thousands of farmers march on Westminster.

Tractors were seen ploughing through barricades as farmers descended on Whitehall on Tuesday (November 19) to demonstrate against Rachel Reeves' autumn Budget.

From April 2026 inheritance tax for farming businesses will limit the existing 100% relief for farms to only the first £1 million of combined agricultural and business property.

Some farmers warn they will have to sell off land to meet the costs and are threatening to strike over the pressures with many rising concerns about the mental health.

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Wellies

The Met Police estimated more than 10,000 people had joined the rally in central London by midday – with "more arriving".

Shadow rural affairs minister James Evans travelled to Westminster to attend the march in support of Welsh farmers like himself.

In Cardiff, the Welsh Conservative Senedd group - many of whom own farms - arrived at the Welsh Parliament wearing dirty wellies in solidarity.

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'Calm down'

During FMQs, Baroness Eluned Morgan said farmers in Wales were the "bedrock economy" which is why they receive the "highest amount of subsidy".

She added that the previous Conservative administration in Westminster had left a "black hole" in government finances and that "somebody has to pay for it"

Baroness Morgan also defended her recent plea for farmers to "calm down" which she made during an interview marking 100 days as FM.

Speaking in the Chamber, she said: "To quote me correctly, I was very clear that 'we' should all calm down and I think also it’s important for us to be careful here because I think there is a lot of anxiety within the agricultural community.

"The last thing we need to do is to poor fuel on that fire. There are a lot of farmers who are in a lot of stress at the moment and it is important for us to to make sure that we work through exactly the implications for people in our communities."

'Unaffected'

Prime Minster Keir Starmer says "the vast majority of farms would be unaffected" by the changes to inheritance tax.

This was echoed by the First Minster who told the Senedd that the Welsh Government had calculated that "very few" would feel the impact of the changes.

Baroness Morgan said the Deputy First Minister with responsibility for Climate Change had spoken with Wales' farming unions to ensure they had access to treasury data in order for them to make their argument with UK ministers.

She said: "We are taking this seriously and I think what is important is that we recognise that inheritance tax at non-devolved area so it is the treasurer who has those figures.

"The Welsh farmers union will have an opportunity to show their working and the treasury will be able to show their workings and then we need to come to a conclusion on this issue.

"The Welsh government provides significant funding to the agricultural sector not just in terms of general support but also through farming connect to help people with succession planning and if they have fears, I would suggest that they go and speak to them."

Thresholds

As the protest got underway in London, Keir Starmer reiterated his stance that the "vast majority" of farms will be "totally unaffected" by changes.

Speaking to the BBC in Rio de Janeiro where he is attending the G20 summit, he said that the UK Government had put money into farming at the Budget.

He added: "If you take a typical case, which is parents who want to pass on their farm to one of their children … by the time you’ve built in the other income tax thresholds, it’s only those with assets over £3 million that would begin to pay inheritance tax, and that’s why I’m very confident that the vast majority of farms will be totally unaffected."