First Minister accuses opposition of “scaremongering” over farm tax changes

The first minister has leveled an accusation of “scaremongering” against opposition parties concerning their objections to forthcoming modifications in inheritance tax regulations affecting farmers. In the preceding week, the Labour chancellor in Westminster declared that inherited agricultural assets exceeding a value of £1m would cease to be exempt from this tax. During a Senedd session on Tuesday, Andrew RT Davies, who leads the Conservative group, characterized this action as a “brutal betrayal”. Conversely, Eluned Morgan asserted that these alterations would impact merely a “very small proportion” of farmers in Wales. Rachel Reeves announced in her budget presentation on Wednesday that, effective April 2026, a 20% tax would be imposed on the value of inherited farming assets exceeding £1m. Although the 20% rate still constitutes a 50% tax relief when compared to the standard rate, farming unions and opposition parties have voiced criticism regarding this decision. Andrew RT Davies stated that Labour politicians had previously maintained there were no intentions for such revisions, and he questioned the first minister: “Do you understand the anger, the concern and the fear that farmers and those dependent on the agriculture industry feel when they have been so bitterly betrayed by your party?” Morgan responded by instructing him to “stop scaremongering”, further stating that “actually there will be a very small proportion of farmers in Wales that will be impacted by that inheritance”. Delyth Jewell of Plaid Cymru, deputizing for party leader Rhun ap Iorwerth during First Minister’s Questions, similarly indicated that farmers were “feeling betrayed”, asserting that the new policy “threatens the future of many Welsh family farms”. Morgan countered by stating that the “vast, vast majority” of farms in Wales would not be liable for this tax. Notwithstanding the declared modifications to the regulations, additional inheritance tax allowances permit farmers to inherit assets valued at almost £3m without incurring tax. Morgan further commented, “There is a huge allowance when it comes to the agricultural community, and what we’re talking about here is extremely large and wealthy farms.”