A COUNCIL spent an hour and 40 minutes debating changes to inheritance tax rules for farmers it has no control over.
Monmouthshire County Council was asked to pass a motion noting “regret” at the removal of agricultural property relief, that means farms aren’t subject to inheritance tax, and that it would work with farming unions and other Welsh councils to lobby the UK Government.
Conservative councillor, and farmer, Rachel Buckler put the motion forward and as well as stating the council “greatly values” Monmouthshire farmers for food production and environmental stewardship it asked the Labour-led council to “persuade the UK Government to protect our rural communities and not kill off family farms”.
Labour’s cabinet member for rural affairs, Cllr Sarah Burch, said there was “much in the motion” she could agree with but refused to back a campaign to oppose changes to inheritance tax.
She put forward an amendment, that was accepted despite the Conservatives and some independents voting against it, that changed the motion to “only noting changes to inheritance tax are perceived as a threat”.
The amended motion didn’t commit the council to supporting, or campaigning against, the UK Labour’s government’s proposals, though Cllr Burch said she supported reform of the agricultural exemption.
It was passed due to 21 votes from Labour councillors, and independents Emma Bryn and Meirion Howells while the 17 Tories present all voted against, as did independent group leader Frances Taylor.
The Tories were also angered by the amendment as it changed the motion to say farming is also facing difficulties from decisions of the previous Conservative government, including Brexit, “poorly negotiated trade deals” and supermarket pricing, though it was further altered, at the suggestion of Conservative Tomos Davies, to add subsidy reforms from the Labour Welsh Government to the list.
Cllr Buckler told Cllr Burch her motion was focused on an issue currently facing farmers and told her: “Farmers don’t agree with you. I’m standing with our farmers, rural communities and people who marched to London.”
The Devauden councillor said it was with a “heavy heart” she couldn’t support the amended motion and said the UK Government isn’t willing to listen.
Mitchell Troy and Trellech Tory Jayne McKenna, who described herself as a farmer’s daughter and said her parents missed the birth of her daughter as they had an expectant cow, said: “We are talking about the here and now and the future, not the past”.
Green Party cabinet member Ian Chandler described their Llantilio Crosseney ward as one of the county’s most rural and said the original motion, combined with Labour’s changes, “addresses the issues faced by our farmers and it’s important the council recognises that.”
Cllr Chandler questioned if the threshold for paying inheritance tax had been set at the right level but said Cllr Buckler’s description of an average, hill farm in Monmouthshire, being 75 acres wouldn’t meet the £1 million figure. Cllr Buckler said her sums were correct as the value would also include buildings and machinery.
Existing tax relief was described as “vital in maintaining family farms in Wales” and Cllr Buckler said land value “unfairly inflates” what farmers inherit, with most earning below the living wage. She said ending the relief “incentivises corporate entities taking over our countryside.”
Cllr Burch said it helped drive up land prices and the impact of Labour’s plans aren’t yet known but said the council is supporting farmers, including the retention of its county farms estate.
Labour’s Su McConnell and independents David Jones and Simon Howarth, who are both farmers, declared a prejudicial interest and didn’t take part in the debate. Cllr McConnell said her husband is the “ultimate beneficiary” of a will affecting a family farm.
