With November now underway, attention is turning to the UK Government as it prepares to unveil its Autumn Budget. Last week, the FUW was in Westminster meeting with MPs to raise our concerns about proposed changes to Agricultural Property Relief (APR) - reforms that we fear could have far-reaching consequences for family farms and rural communities across Wales.

FUW analysis shows that up to 48% of Basic Payment Scheme recipients in Wales, and the vast majority of farms responsible for Welsh agricultural output, could be affected by the reforms. Many family-run businesses would face inheritance tax bills so large that they would be forced to sell land or assets to meet them. Independent research by CBI Economics supports this concern, suggesting that the proposed changes could lead to nearly 10,000 job losses and a 12% fall in business turnover across Wales.

Not only that, the potential impacts of the inheritance tax reforms are wide reaching for farming business and rural communities in Wales. We hold the view that these proposals will increase the number of speculators seeking to benefit from any rates of tax relief, decrease the amount of land used for agricultural purposes and increase our reliance on food imports.

In our view, the reforms are unfair, poorly targeted, and risk devastating the backbone of the Welsh rural economy. Family farms are already under immense financial pressure, and these proposals would only add to the uncertainty and anxiety faced by farming families. The issue is particularly worrying for older farmers who still hold ownership stakes in their businesses and fear that their death could leave loved ones with unmanageable tax burdens. Those living with terminal illness may not have the time to make new succession plans, leaving their families in an impossible position.

The FUW believes that farm assets should not be taxed when transferred between generations for continued agricultural use or when let to another farming family. Instead, inheritance tax could apply only if the assets are later sold outside the family or leave farming use. As a minimum, we are calling on the Treasury to retain the existing seven-year gifting rule without introducing a cap on lifetime transfers, and to implement transitional arrangements for older and terminally ill farmers who would otherwise be unfairly affected.

While we recognise the pressure on public finances, the current proposals would impose an unsustainable burden on Welsh farming families. We urge the Government to reconsider these reforms and adopt a fair, balanced approach that safeguards the future of family farming and rural Wales.