David Chadwick

David Chadwick

Liberal Democrat — Brecon, Radnor and Cwm Tawe

Speaking in the House of Commons on 16 December 2025

Debate

Finance (No. 2) Bill

Contribution

My hon. Friend is quite right to point to the struggles of upland farmers, who deserve to earn a living from their work—they are working people too, but they are not being recognised as such. Agriculture and the wider food and drink sector supports more than 228,000 jobs in Wales and generates more than £24 billion in turnover each year. This is not a marginal industry; it is a pillar of the Welsh economy. Industry bodies have warned that these tax changes will force family farms to sell land or assets simply to meet higher liabilities, accelerating consolidation and driving our young people out of rural Wales, which damages our food security and local supply chains, hollows out communities and obviously undermines our tax base, too. This is not just an economic but a cultural issue. Some 43% of people working in agriculture in Wales speak Welsh, compared with 20% of the population overall. To undermine family farming is to undermine Welsh culture and the Welsh language itself. What makes this policy even harder to defend is the Government’s selective approach. Ministers have refused to act on supermarket profiteering—with Tesco alone seeing its profits rise by more than 100%—yet are content to squeeze family farms that are already grappling with rising costs and post-Brexit uncertainty. The Welsh Affairs Committee has called for this policy to be paused so that a Wales-specific impact assessment could be carried out. It is a grave mistake that that request has been ignored. This is becoming a familiar pattern for those of us from Wales. There has been rail underfunding, a refusal to devolve powers, including over taxation, and now a tax that threatens one of Wales’s most important sectors. Time and again, Labour has advanced policies in this Parliament that would hit Wales the hardest, and waved them through regardless. The Welsh Liberal Democrats oppose this tax because we believe that family farms should form the spine of a prosperous rural economy. Rural Wales—in fact, the rural economy across the whole UK—deserves a plan for growth, not punishment driven by ideology. The Welsh Government deserve a Government who understand the value, strength and work that our agricultural sector provides to rural Wales. I think of the tens of young farmers’ clubs in my constituency; they are run by incredible young people who form community groups and build the confidence of the young people in their communities, as well as running their family businesses. We need those young people to stay in Wales, run their businesses well, and create the jobs and employment that will enable rural Wales to prosper. Instead, they are being told by this Government, “No, we’re going to hit you with an extra tax”. This will fall on the shoulders of Welsh young farmers. The Welsh economy deserves a Government who understand Wales, and that is not what we are getting so far.

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