Submission of evidence to Welsh Affairs Select Committee

Last month the CLA Cymru team were asked to submit evidence to the Welsh Affairs Committee in Westminster, answering key questions about the state of farming in Wales.

The Welsh Affairs Committee is a cross-party group of MPs at the House of Commons. It examines the work of the Wales Office and other government departments regarding their responsibilities in Wales. Its main role is to scrutinise the impact of UK Government policies on Wales, ensuring that Welsh interests are considered in decision-making processes. The committee is currently chaired by Stephen Crabb MP.

The committee has launched an inquiry into the future of farming in Wales, focusing on the challenges and opportunities that lie ahead. As part of this process, CLA Cymru was directly invited to submit written evidence, with the potential to provide oral evidence at a later date. This invitation presented a valuable opportunity to raise key concerns and advocate for the agricultural sector in Wales, which we submitted last month.

One of the critical issues addressed in the CLA’s submission was the transition from direct agricultural payments to new policy frameworks. The Welsh Government has committed to maintaining Basic Payment Scheme (BPS) funding through 2025, but gradual reductions are set to begin in 2026, eventually phasing out by 2030. The CLA emphasises the need for ring-fenced longer-term funding to ensure sustainable land management and productivity without redirecting agricultural funds to other sectors.

Another pressing matter is the potential impact of the UK Government's proposed inheritance tax (IHT) reforms. Nationally the CLA has raised concerns about how changes to Agricultural and Business Property Relief (APR/BPR) could destabilise farming businesses. From a Welsh perspective, our evidence was pitched to reflect both direct and indirect impacts.

Additionally, the CLA’s evidence highlights the risks associated with the proposed shift from ring-fenced agricultural funding to ‘Barnettised’ funding. This change could result in a significant reduction in financial support, potentially undermining food security and the rural economy.

CLA Cymru office sees this inquiry as a vital platform to advocate for fair and consistent funding and to protect the future of Welsh agriculture. Through robust evidence and case studies, the submission aims to inform the committee and influence policies that will impact farmers and landowners across Wales.

https://committees.parliament.uk/committee/162/welsh-affairs-committee/