“Protecting working people” - a line heralded time after time in the run-up to, and during last week’s long-awaited Budget statement. However, as the dust settles following Rachel Reeves’ announcement on Halloween-eve, for many hardworking Welsh farmers the consequences of the Budget are likely to unravel as more of a trick than a treat.

At the heart of such anxieties lies the significant reform of inheritance tax relief. “Ensuring that we continue to protect small family farms” was the Chancellor’s promise from the dispatch box - but in practice, such changes have sent shockwaves through our farming families.

Inheritance tax relief through the Agricultural Property Relief (APR) has long supported the very fabric of our rural communities - aiding and incentivising Welsh family farms to pass from generation to generation. This has ensured those who inherit agricultural holdings are not crippled by taxes - thus avoiding adverse effects on rural businesses and employment, and crucially, safeguarding our wider Welsh food production and food security.

Due to the key importance of APR, the FUW has long opposed reforms to its structure - a position that was also previously voiced in November 2023 by Labour’s Steve Reed, now Secretary of State at DEFRA, who less than a year ago ruled out scrapping inheritance tax relief for farmland.

However, despite these previous assurances, the Budget revealed that from April 2026 the 100% rate tax relief will cease for businesses and land worth over £1 million - with an inheritance tax introduced thereafter at an effective rate of 20%.

The Chancellor assured us that three quarters of farms would remain unaffected by the change, but the FUW shares the industry’s wider concerns that these reforms could very well undermine the viability of our family farms, rural communities and the wider need for food security.

Whilst a million pounds may appear to be a huge sum for those outside the industry, for many Welsh farmsteads, even a conservative estimate of the value of accumulated land and infrastructure could see the £1m threshold easily breached. Subsequently, for many farming families, asset rich but operating on slim financial margins, there may well be little choice but to break-up the family farm to meet such death duties.

The emotional, economic and societal consequences of this potential dissolution of Welsh family farms could be significant and will have a real consequence for our food production - impacting the price of food. To this end the FUW will continue to challenge this tax reform and lobby the UK Government for a degree of clarity on changes which appear confused and ill-thought through. 

As last week’s announcement inevitably draws farmers’ thoughts and focus towards succession planning and future-proofing, it is worth emphasising alternative avenues of estate planning are available - with guidance and support for farmers readily available from partners of the FUW.

However, in a year that has already seen mass unrest, uncertainty and declining morale within the farming sector, this latest intervention from Government is a further straw on the strained back of an industry already in turmoil.

FUW Insurance Services Ltd, Wales’ largest agricultural insurance broker, has announced the appointment of Karen Royles as its first female Executive Director following approval by the Financial Conduct Authority (FCA).

Karen, who lives in the Wrexham area, joins the Board as Operations and Sales Support Director, bringing a wealth of experience to the role, having previously held various positions within the organisation.

With a background in the hospitality sector, Karen joined FUW Insurance Services Ltd as an insurance account handler at the Ruthin office on a 6-month maternity cover contract in November 2015. Over the past 9 years, she has gone on to be promoted to several roles within FUW Insurance Services Ltd and FUW Ltd, including Administration Manager, and currently serves as Group Operations Manager - a position she has held since March 2022.

Karen’s appointment to the FUW Insurance Services Ltd Board of Directors sees her become the first female to be appointed executive director to the Board, and follows the appointment of prominent businesswoman, Ann Beynon OBE as FUW Insurance Services Ltd Chair in 2023 - becoming the first female to hold the position.

Responding to her appointment, Karen Royles said: “I am honoured to be appointed to the FUW Insurance Services Ltd board of directors, and look forward to continuing to use my knowledge and experience to help provide key insurance services for communities and businesses across Wales.

In particular, I’d like to recognise and thank the incredible support I’ve received from all in the FUW Insurance Services Ltd and FUW Ltd teams over the past 9 years. I started at an entry level position in the company and am grateful that a business which prides itself on building a structure for staff development at all levels can prove that commitment through their support for my career path over the past nine years.

I look forward to the new challenge, and will strive to build on FUW Insurance Services Ltd’s position in the agricultural and commercial market.”  

Ann Beynon OBE, Chair of FUW Insurance Services Ltd Board, welcomed Karen’s appointment, saying: "I am delighted to welcome Karen to the FUW Insurance Services Ltd Board of Directors. In an industry where women remain underrepresented, her appointment to such a senior role is to be welcomed.”

Having worked closely with Karen over recent years, I have no doubt her vast expertise and experience - from account handler to head office - will strengthen our ability to deliver exceptional services and support for members, and continue to ensure the long-term success of FUW Insurance Services Ltd as one of Wales’ leading insurance brokers.”

The Farmers’ Union of Wales has expressed grave concerns following the announcement by the Chancellor of Exchequer in the Autumn Budget today (30.10.24) that Agricultural Property Relief (APR) will be reformed from 2026, leaving the future of many Welsh farms in the balance.

During the Budget, it was announced that the 100% rate tax relief will come to an end for businesses and land worth over £1 million in the agricultural sector from April 2026. The current 100% rate of relief will continue for combined agricultural and business under £1 million, but for assets over £1 million, inheritance tax will apply with 50% relief, at an effective rate of 20%.

This reform is likely to affect a majority of Welsh family farms,

Responding to the announcement, FUW President, Ian Rickman said:

“The FUW has previously warned that changes to the agricultural property relief would have an impact on the viability of family farms and our rural communities - as well as adverse consequential effects for related businesses and employment.

“We know the average size of farm holdings in Wales is around 120 acres - with even conservative estimates of land worth and buildings putting most farms at over £1 million in asset value. 

“Agricultural Property Relief has long played an essential role to ensure those who inherit agricultural holdings are not crippled by taxes when family farms are passed from one generation to the next.

“We await further details regarding APR and what the announcement today means for Welsh Government budgets, but at a challenging period for farming in Wales, this news will add further uncertainty to farm businesses doing their utmost to produce food and enhance the environment.”

Members concerned about this issue should contact their local FUW county office for advice from our partner agent RDP Law.

By Glyn Roberts, former FUW President

On reflection, I can’t recall the first time I met Lorraine. A person of great character and warmth but I do remember her on the FUW’s Finance & Organisation (F&O) committee, of which she was elected some time before me. Lorraine and Terry Bayliss used to travel up to Aberystwyth together, I learned very quickly that if I wanted to convince these two I needed to carry out my homework first, as both were of strong characters. I probably disagreed more with Lorraine on some things than any other member of the F&O, but any disagreement ended at the door on the way out.

A few years ago, Eleri, myself and our daughters went to visit Lorraine at Cwm Carno. She made us feel at home straight away. We could see she was a hard working, independent woman with a heart of gold. She was sure of her beliefs and would undoubtedly stand up for herself in a male dominated agricultural world. Sometimes, people would take her the wrong way due to her abruptness, as I learned. You had to take Lorraine as she was! She was an inspiration to my daughters - a strong willed woman. Lorraine and Beca used to discuss farming issues and always teased one another - she had a great sense of humour. I can hear her now saying “Don’t you listen to your father! You do whatever you want! You show him how to farm!”

Last August was the last time Eleri and I visited Lorraine. Unfortunately, I could see a deterioration in her health but her mind was as sharp as ever! Soon the conversation revolved around FUW matters and back to the good old days of the F&O. I remember telling her that we disagreed on many things, her answer was that the important thing was that we had a mutual respect, we did what was best for the Union and the industry, and we did nothing for our own benefit. Fair play to Lorraine she lived by these principles.

Another of her principles was her determination to give Lee Pritchard an opportunity to develop within agriculture as he was not from a farming background. On that day we last saw her, we saw others who had been important to her - she emphasised her respect for the FUW’s current President Ian Rickman as well as past Presidents Gareth Vaughan and Emyr Jones. She was also very complimentary of the FUW’s County Executive Officer in Glamorgan and Gwent, Sharon Pritchard and past County Executive Officer, Glyn Davies.

The picture of Lorraine shows us exactly who Lorraine was - it shows the passion Lorraine had not only for agriculture but also for the FUW with her cap and the Welsh Black jumper, that’s how I will definitely remember her.

Lorraine used to be a teacher, but her true career was farming and her heart was in the rural community. She was from the Valleys, with a strong Valleys accent and was proud to carry the Valleys values running through her veins! She used to tell me that she was one of the “WERIN”, not one of the “crachach!”

Although her health was not at its best in the last few years, she coped well in a positive manner. She still visited the Royal Welsh Show and adapted herself to the environment by using the buggy.

She, like everyone else, did have some disappointments in life, I’ll never forget the way she opened her heart to me on one occasion. She said that she was not as hard as some people thought she was. I remember seeing a poster with a picture of a kiwi fruit stating it was hard on the outside and rough on the edges but soft in the middle, this was Lorraine in a nutshell. 

I remember travelling from Anglesey Show with Lorraine and Beca when Lee phoned. From my one-sided conversation, I understood that Lee wanted a new machine and Lorraine sounded quite adamant and stern that she could not justify the investment. After concluding the conversation, Lorraine turned to me and said Lee would have the machine as he was such a good boy, “I’m so lucky to have him.”

Lee was like a son to Lorraine, they were such a good team. There was mutual respect and friendship between both, I’m adamant Lorraine’s legacy will live on through Lee, and pob lwc to Lee and the family.

Cwsg a gwyn dy fyd Lorraine fach. 

Llyfr o atgofion a hiraeth - ni all neb ei gau. 
A book full of memories and loss - no one can never close.