Powys councillors are set to debate 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.
At a council meeting on Thursday, December 5, Conservative councillors will propose the motion to: “protecting British family farms and preserving rural communities.”
Cllr Iain McIntosh will put forward the motion for debate.
Cllr McIntosh said: “This council notes the proposed changes to inheritance tax announced by the UK Labour Government in the recent autumn budget, which would scrap Agricultural Property Relief (APR).
“APR has been instrumental in allowing family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship.”
“This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000 which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”
These figures - that come from the Country Land and Business Association (CLA) - have been disputed by the government.
The UK Government has said that up to 520 farm estates a year will be affected by the changes and that three quarters of farmers will pay nothing as a result of changes.
Cllr McIntosh believes that the inheritance tax will have severe impacts on food security, the stability of the rural community and environmental stewardship.
Cllr McIntosh said: “Selling off land or closing farms will put our national food independence at risk, at a time when global stability is already fragile.
“Family farms are critical to ensuring a steady supply of home grown food.
“Farms cover 70 per cent of the UK’s land, with family farms playing a leading role in nature recovery, biodiversity, and sustainable land management.
“The sale and fragmentation of these lands would hinder conservation efforts and undermine environmental initiatives.”
Cllr McIntosh wants the council to: “Oppose the Labour Government’s changes to inheritance tax affecting family farms in Powys and advocate for the exemption of Powys family farms.”
He asks that: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed family farm tax.”
The motion will be formally seconded by fellow Tory Cllr Benjamin Breeze.