Renewed calls for Government to revisit APR changes following welfare benefits U-turn

As the UK marks the first anniversary of Labour's 2024 general election victory on July 4th, the Farmers' Union of Wales (FUW) has renewed calls for the government to extend the same flexibility shown on other controversial policies to the vital agricultural sector, specifically regarding drastic changes to Agricultural Property Relief (APR).

Over the past year, domestic policy has been dominated by three contentious government measures which have sparked public and backbench unrest - specifically the Winter Fuel Payment, welfare benefit reform, and changes to Agricultural Property Relief.

The initial plan to scrap the universal Winter Fuel Payment caused significant public unrest. However, following considerable pressure, the government performed a substantial U-turn, restoring payments for most pensioners, with the Chancellor clarifying that those with an annual income under £35,000 would remain eligible.

Similarly, proposed changes to welfare benefits, particularly Universal Credit and Personal Independence Payment (PIP), faced a major backbench rebellion. As a result, these reforms were significantly watered down in a vote earlier this week - demonstrating the government's willingness to buckle under public and political pressure.

"The old saying goes, 'things come in threes'," said Ian Rickman, Farmer’s Union of Wales President.

"Having shown they can listen and adapt on both the Winter Fuel Payment and broader welfare benefit reform, the government must now apply that same pragmatic approach and revisit the changes to APR before irreversible damage is inflicted upon a sector vital to Wales and the wider UK."

Drastic changes to Agricultural Property Relief (APR) were announced in the Autumn Budget 2024 and set to take effect from April 6, 2026. Despite the Prime Minister's earlier insistence that a "vast majority" of Welsh farmers would remain unaffected, previous analysis from the Farmers' Union of Wales (FUW) suggests up to 48% of Basic Payment Scheme (BPS) recipients in Wales could be subject to the new inheritance tax proposals. The FUW has argued that if this reform remains unchanged, the consequences for farmers, rural communities, and food production in Wales could be devastating and irreversible.

Since these proposals first emerged, the FUW has consistently urged the government to reconsider the policy. However, despite the industry's dire warnings, growing unease among many government backbenchers, and a recent call from Westminster’s Environment, Food and Rural Affairs (EFRA) Committee for a delay, these appeals appear to have fallen on deaf ears, and the April 2026 implementation deadline is now rapidly approaching.

Ian Rickman added:

"As the FUW has consistently argued, the aim is not to scrap the policy entirely, but rather, we seek targeted adjustments that prevent hardworking family farms from being crippled by these changes. Instead of an approach comparable to a sledgehammer cracking a nut, the FUW has sought the opportunity to design a policy with HM Treasury that genuinely works for family businesses and effectively closes the existing loopholes that allow non-farming investors to benefit disproportionately, perhaps through a 'clawback' mechanism on assets sold after inheritance."

“Failure to revisit this ill-thought-out policy risks undermining the very foundations of multi-generational family farms, impacting food security and the rural economy for generations to come.”