Local politicians have criticised the UK Government for pushing through the family farms tax, warning it will have a devastating impact on the sector.

In a vote in the Commons tonight, 23 of Wales’s 27 Labour MPs voted to support the family farms tax, whilst the remaining 4 abstained or weren't present to vote. The Welsh Liberal Democrats and Plaid Cymru voted against the policy. The Conservatives no longer have any MPs in Wales.

The new tax changes, which alter the rules around agricultural property relief and raise the tax burden on inherited and family-run farms, are expected to hit Wales disproportionately due to the country’s high proportion of small and medium-sized family farms. Industry groups have already warned that the reforms risk pushing farming businesses into financial crisis, accelerating the trend of consolidation, and undermining the long-term sustainability of local food production.

According to recent economic assessments, agriculture and the wider food and drink sector support over 228,000 jobs in Wales (around 17% of the entire workforce) and generate more than £24 billion in turnover each year, making them vital to the whole Welsh economy, not just rural areas. Critics warn that the new tax regime could force many family farms to sell land or assets simply to meet higher liabilities, triggering a ripple effect across supply chains in towns and cities.

43% of those working in agriculture, forestry and fishing in Wales speak Welsh, compared with just 17.8% of the overall population, so any policy that accelerates rural depopulation risks seriously undermining everyday community use of the language.

Reacting, Ceredigion Preseli MP Ben Lake said: “Last night I voted against Labour's continued family farm tax. The UK Government has not even conducted an assessment of the impact of inheritance tax changes on Wales. They must not push ahead without knowing the impact on our communities.”

Welsh Labour MPs voted to back the family farms tax despite a cross-party Welsh Affairs Select Committee report explicitly calling on the UK Government to pause its introduction so that a full Wales-specific impact evaluation could be carried out.

The Welsh Liberal Democrats said Labour’s decision to plough ahead regardless shows a clear ideological disregard for rural Wales, with the Party choosing to ignore constructive solutions and compromise proposals that could have protected family farms while still meeting wider policy aims.

David Chadwick MP said: “Family farms are the backbone of rural Wales economically, socially and culturally. By voting through this damaging tax, Welsh Labour MPs have turned their backs on the very communities they claim to represent. These changes will put enormous strain on farming families already grappling with rising costs, volatile markets and the uncertainties of post-Brexit trade.

“This is not only a blow to farmers’ livelihoods, but a threat to the Welsh language and the rural communities that rely on agriculture to survive, as well as the food and drink sector, one of our country’s largest employers, supporting people not just in rural areas but in our towns and cities too.”