Farm unions disappointed by inheritance tax talks

Welsh farming unions say they are "very disappointed", following a meeting in which they say the UK government showed "no movement" on planned changes to inheritance tax rules for farms.

The National Farmers' Union (NFU) Cymru and the Farmers' Union of Wales (FUW) met Treasury minister James Murray in Whitehall on Tuesday.

Last October, the UK government announced it would charge a 20% inheritance tax on agricultural assets worth more than £1m for the first time, although the threshold for some farmers to pay would be £3m.

Responding to Tuesday's farm union criticism, the government said it was taking a "fair and balanced approach which helps fix the public services we all rely on".

NFU Cymru President Aled Jones told BBC Wales he was "very disappointed" with the outcome of the meeting.

"We went in with an expectation of being able to offer and seek a solution to this issue that we are facing, the huge crisis that the industry is facing.

"We had a costed solution, an alternative which would have offered Treasury an alternative way without devastating the impact on family farms across the country."

"They were not happy or even prepared even to open and consider alternatives."

Mr Jones said his union would "persevere" on the issue.

"We have our members across the country, we have all the family farms who are waiting upon us to drive for a better solution to this issue, and we will continue whatever we do."

FUW President Ian Rickman said: "We put all those arguments about the stress and strain this is putting on farmers... this is putting on Welsh farmers."

"But there was no sign of any movement, and no willingness to carry on a dialogue going forward, and perhaps find a way out of this".

Welsh Liberal Democrat MP David Chadwick accused Labour of waging an "ideological war on the countryside".

The Brecon, Radnor and Cwm Tawe MP added: "Their family farm tax could be the final nail in the coffin for many communities struggling to cope.

"It will worsen rural depopulation and damage the Welsh language, in addition to the serious impact on the economy.

Plaid Cymru agriculture spokesperson Ann Davies said Labour ministers' "refusal to listen" showed "they simply don't care about Welsh farming".

"The UK government's approach ignores the reality of family-run, cash-poor but land-rich farms that are now at risk," she said.

"Plaid Cymru is calling for a Wales-specific impact assessment because our farmers deserve policies that reflect their needs."

A UK government spokesperson said: "We regularly meet representatives of the farming industry to listen to their views, but strongly believe this is a fair and balanced approach which helps fix the public services we all rely on.

"Our reforms to Agricultural and Business Property Relief will mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.

"We are also investing £5bn into farming over the next two years, the largest amount for sustainable food production in our country's history, and are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production."

Planning is the responsibility of the UK government in England and a matter for Welsh ministers in Wales.