Party of Wales Gwynedd Councillors' Group

Plaid Cymru Gwynedd Councillors will this week voice strong opposition to proposed reforms on farm inheritance tax, warning that such changes would disproportionately impact family-run farms across Gwynedd and threaten the cultural and economic fabric of rural Wales.

“These proposals from Westminster are a direct threat to the livelihoods of generations of farming families in Gwynedd and the rural economy as a whole,” explains Councillor Jina Gwyrfai who represents Yr Eifl residents on Cyngor Gwynedd.

“It also places a real threat to food security, here in Wales, as people need access to sufficient local, safe, and nutritious food at all times.

“Welsh Government needs to tackle their Labour colleagues at Westminster on this issue to assess the impact of this ill thought-out proposed policy.” said Jina Gwyrfai (pictured) who represents the villages and surrounding areas of Pistyll, Llithfaen Llanaelhaearn and Trefor on Cyngor Gwynedd. The Plaid Cymru Councillor will bring a notice of motion in front of fellow councillors at Gwynedd’s council chamber today (Thursday 3 July).

Westminster Government’s autumn 2024 budget statement proposed that from the new 2026 financial year, the 100% relief from inheritance tax should be restricted to the first £1 million of combined agricultural and business property within the agricultural community.

Labour said it is there “to help protect family businesses and farms.”

With the average farm income in Wales £30,000 a year say the FUW, Plaid Cymru and industry representatives believe the proportion of genuine commercial family farms affected will be considerable. NFU Cymru’s modelling estimates that over three quarters of working farms across Wales are likely to fall above the £1m threshold.

“Recent discussions at Nefyn Agricultural Show earlier in the season highlighted some grave issues, from both, NFU Cymru and the Farming Union of Wales,” explains Councillor Delyth Lloyd Griffiths (pictured), who represents farmers living in Brithdir, Llanfachreth, Y Ganllwyd and Llanelltyd Ward.

“Everyone knows that farmers are asset rich, owning land and stock but cash poor, with little money in the bank. Profitability of many farming family run businesses is extremely slim and making ends meet for some within the industry is difficult.

“Only this week, the threat of avian influenza is affecting poultry animals in Wales and blue tongue restrictions have been imposed to try and tackle the influx of this disease in cattle and sheep across the border.

“We supported our farmers last year whilst highlighting grave concerns regarding the introduction of a new Sustainable Farming Scheme by the Welsh Government. It feels that the industry is being bashed left right and centre, and that has a detrimental effect on the health and well-being of people living in isolated rural areas, like here in Gwynedd.

Councillor Delyth Lloyd Griffiths is keen to second the motion at Gwynedd’s full council meeting: “Labour believes this is a quick win to raise much needed tax revenue for the public purse, but farmers in my area are telling me that it is an ill thought out proposal that will leave many Gwynedd farmers seriously concerned about the repercussions.”

Plaid Cymru’s rural affairs spokesperson at the Senedd, Llŷr Gruffydd pictured below, said:

“The UK Government must scrap its inheritance tax proposals. There are other ways that they can tackle this issue. A “clawback” system could be used, similar to that seen in some European countries, where inheritance tax would apply only if farmland is subsequently sold within seven years of inheritance. This would better target speculative buyers and would also raise more revenue for the Treasury.

“Their proposed policy unfairly targets family-run farms, which often operate on a hand-to-mouth existence whilst supporting two or three generations of family members. The Labour government should be addressing tax avoidance by wealthy landowners and investors, not targeting our Welsh family farms.”

Councillor Jina Gwyrfai concluded by saying: “Our farms are not just businesses — they’re stewards of language, heritage, and the land. Taxing inheritance without acknowledging these deep community roots would be both unjust and short-sighted. That is the reason I’m putting this notice of motion in front of Gwynedd Councillors to discuss.”