First minister 'calm down' plea on farm tax row

Eluned Morgan said initial calculations showed there were a "tiny proportion" of farms involved

Wales' first minister has called for calm over changes to inheritance tax for agriculture.

Chancellor Rachel Reeves' budget proved controversial in the sector after she announced an end to exemptions for some farms in the Budget.

Marking her 100 days in the job in a BBC Radio 5 Live phone-in, First Minister Eluned Morgan said initial calculations showed a "tiny proportion" of farms were involved but said that the number was still being figured out.

"I just think we should just all calm down a bit until we are clear about how many farms will be affected," she said. Opposition parties said her government was out of touch with rural communities.

During the programme Morgan also said she did not think the incoming president Donald Trump is racist.

She said the UK has to "keep as good a relationship with the United States as we can".

From April 2026, farms worth more than £1m will face an effective inheritance tax rate of 20% - half the usual rate of 40%.

The National Farmers Union has called it "disastrous" for family farms, saying it would see farmers forced to sell land to pay the tax.

Speaking to Nicky Campbell on BBC Radio 5 Live, Morgan said it was a UK government responsibility.

"We know the first million is 100% relief. If you have a partner, that's another million, another 100% relief on the second million.

"So we're getting up to quite big numbers.

"The initial calculations that we've made is that there will be a tiny proportion of farmers in Wales affected by this.

"So I just think we should just all calm down a bit until we are all clear about how many farms will be affected, and we are crunching the numbers on that as we speak."

The Welsh Conservative leader in the Senedd, Andrew RT Davies, said the first minister's comments "show how little this Labour Welsh government understands the rural community".

Warning "this new death tax might well spell the end for family farms", he added: “This decision has to be reversed, because no farmers means no food.”

Plaid's Cefin Campbell said farmers were "rightfully worried about the impact Labour's Budget will have on them".

"Telling them to calm down - really?" he said. "How much more out of touch can you get?"

Morgan should "demand the UK Labour government scrap the changes to inheritance tax and ensure fair funding for agriculture," he said.

BBC Verify has reported that the likely number of farms affected in the UK each year is around 500.

The largest estimate, 70,000 from the Liberal Democrats, relates to the total number that could ever be affected.

Eluned Morgan took the helm of the Welsh government in the summer after months of upheaval over the leadership of Vaughan Gething.

In the phone in the first minster defended the 20mph speed limit in mostly built up areas on the programme.

Admitting that to say it was controversial was an "understatement", she said there had been a significant reduction in accidents.

On waiting times in the NHS, Morgan said she recognised "that we have a huge amount to do", and said she had announced £28m to help cut long waits.

Challenged on the expansion of the Senedd, the first minister said the legislature is "much smaller than other parliaments".

"It's more difficult to have more people scrutinizing me, but there's plenty of evidence to suggest that when people like me are scrutinized, we do a better job."