POWYS councillors, many of them farmers, voted to support a motion that criticises the UK Labour Government’s decision that farmers should pay inheritance tax.
Under the government’s plans, from April 2026, inherited agricultural assets worth more than £1 million which were previously exempt, will be subject to inheritance tax at 20 per cent.
The motion was presented by Conservative Cllr Iain McIntosh who wanted the council to formally: “Oppose the Labour Government’s changes to inheritance tax affecting family farms in Powys and advocate for the exemption of Powys family farms.”
Councillors had been given legal advice by the council’s head of legal services and monitoring officer Clive Pinney that those with direct interest in agriculture could speak on the motion but should not vote on it.
Powys Independent Cllr Ed Jones “I am one of the farmers in this room that’s directly affected by this inheritance tax.
“I was in London against it, I will be voting on this and I will take the consequences as I think I’m representing my area as well as myself.
“It effects everyone in Powys.”
Powys Independents Cllr Gareth D Jones said: “I am a farmer. “I have three sons.
“I have done everything in my power to persuade them not to be farmers because it is a horrible job to be in when you’re making no money.
“Where are you going to get people to farm the land and produce food, without of our sons and daughters coming into the industry.”
“For some reason my sons like getting up early and working with sheep and hens, unlike their friends who are off playing golf and football.
“For me to pass (the farm) on to my sons would mean a significant inheritance tax that would then make the farm unviable.”
Cabinet member for a safer Powys, Liberal Democrat Cllr Richard Church “There are many threats facing farmers in Wales of which this tax is just one.
“They are facing the consequences of Brexit, the consequences of the uncertain funding they will get through the sustainable farming subsidy and many other things.
“I would make the point that farmers are facing is the wholesale acquisition of thousands of acres of land by people who are using it as a tax dodge.
“They are not interested in farming, and they are the ones really harming Powys communities and farmers.
“I just wish the motion had made reference to that as well as this particular tax.”
Some councillors defended the government’s proposal.
Labour’s Cllr Liz Rijnenberg said: “I can’t see any hard evidence that the government plans to introduce a lower rate of inheritance tax for farms is going affect food security.
“There is a significant amount of wealth that can be accumulated and retained before 20 per cent inheritance tax applies, and it can be paid over a 10 year period.
“Those benefits don’t apply to other family businesses in Powys.”
The motion was passed as 41 councillors voted in favour of it, seven voted against and five councillors abstained.