David Chadwick has criticised Welsh Labour MPs after the UK Government pushed through controversial changes to inheritance tax, with farming unions and rural campaigners warning the reforms could severely affect family-run farms in Wales.

In a House of Commons vote yesterday, 23 of Wales’s 27 Labour MPs backed the changes, while the remaining four either abstained or were not present. Plaid Cymru and the Welsh Liberal Democrats opposed the measure, and the Conservatives currently have no MPs in Wales.

Critics have argued the reforms, which impose a new tax structure on inherited agricultural land and businesses valued over £1 million and alter agricultural property relief, are expected to disproportionately impact Wales due to its high number of small and medium-sized family farms. Farming groups have warned the changes could push businesses into financial difficulty, accelerate consolidation, and threaten the long-term sustainability of local food production.

David Chadwick, Liberal Democrat MP for Brecon, Radnor and Cwm Tawe, accused Welsh Labour MPs of ‘turning their backs’ on their constituents.

“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,” he said.

“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.”

The vote exposed divisions within Labour, with some MPs breaking ranks. Markus Campbell-Savours, representing Penrith and Solway, opposed the measure, telling the Commons that farmers had been assured during the election campaign that agricultural property relief would be protected.

Treasury Minister James Murray defended the reforms, describing them as “a fair way forward” and highlighting provisions in the Budget that allow married couples to transfer any unused allowances.

From April 2026, the full 100 per cent inheritance tax relief for agricultural and business property will apply to the first £1 million of combined assets. Amounts above this will qualify for 50 per cent relief, with tax payable in interest-free instalments over 10 years.

The government has also made unused allowances transferable between spouses and civil partners, effectively doubling the maximum relief for married couples or civil partners to £2 million. Combined with the standard nil-rate band and residence nil-rate band, some families could pass on up to £2.65 million without paying inheritance tax, the government has said.

The government says the changes aim to target relief more fairly, protecting small and medium-sized family farms while limiting very large claims. Some estimates suggest the top 7 per cent of claims currently account for 40 per cent of the total value of agricultural property relief, costing taxpayers around £219 million.