FUW give evidence to Westminster's Welsh Affairs Committee
Last week the Farmers' Union of Wales welcomed the opportunity to present evidence to Westminster's Welsh Affairs Committee inquiry into the challenges and opportunities facing farming in Wales in 2025.
The FUW was represented by our Head of Policy, Gareth Parry, who was questioned by MPs on a number of the ongoing challenges facing Welsh agriculture; including the UK's withdrawal from the European Union, the changes to agricultural and business property relief and how changes to the UK Government's funding for Welsh agriculture will impact the sustainability of the sector.
As part of the session, the FUW highlighted the impact the UK's departure from the EU has had due to the loss of the intermediate-term stability provided by the EU's seven year Multiannual Financial Framework.
The lack of such replacement financial frameworks has allowed the UK Government to apply the Barnett Formula to any future adjustments to Welsh agricultural funding, meaning that Wales will receive subsequent uplifts based on a historical share of the UK population as opposed to rural needs.
Beyond the uncertainty regarding future farm funding, the FUW also highlighted how successive UK governments' appetite to sign trade agreements with other countries has undermined domestic food production.
These agreements threaten to pull the rug from beneath Welsh farmers by reforming agricultural policies and replacing domestic food production with imports, with little consideration of the economic viability of Welsh farming businesses.
Several questions during the session focused on the proposed inheritance tax reforms, with Mr Parry relaying the latest figures from Family Business UK and CBI Economics on the potential impacts for the UK economy.
In summary, the report suggests that the reduction in business activity will lead to a loss in Gross Value Added (GVA) of £14.8 billion over the next five years.
These latest figures again demonstrate HM Treasury's failure to consider the wider economic and social impacts of the proposed changes, and far-reaching implications on Welsh family farms and the economy.
Frustratingly, it's been clear since the Budget announcement that HM Treasury Officials have had no intention of even acknowledging our concerns.
They have slammed the door on the industry and appear to have thrown away the key.
It remains the case that the FUW are not calling for the policy to be scrapped, however we continue to seek an opportunity to design a policy with HM Treasury that works for genuine family farms whilst closing the loopholes that currently exist.
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