Select committee: Welsh Affairs Committee

Recommendation 15

2nd Report - Farming in Wales in 2025: Challenges and Opportunities Published 12 Nov 2025 Addressed to Wales Office
Recommendation (the committee's words)
The UK Government must intensify efforts to fully establish an SPS zone with the EU, as a key step towards reducing trade friction for Welsh agricultural exports. We call on the Government to publish a roadmap for how they plan to establish an SPS zone between the UK and EU by May 2026. (Recommendation, Paragraph 81)

From: Welsh Affairs Committee, 2nd Report - Farming in Wales in 2025: Challenges and Opportunities (HC 785), 12 November 2025

Government response

The government responded to the whole report on 30 January 2026 (deadline 12 January 2026).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response sets out its reasons for maintaining the inheritance tax reforms, does not say it will publish a Wales-specific impact assessment, and sets a target of 2027 for SPS arrangements, "subject to agreement with the EU".

  • On inheritance tax, it does not commit to delay. It announced in December 2025 that the allowance for 100 per cent relief will rise from £1 million to £2.5 million, and says the reforms from 6 April 2026 "get the balance right".
  • It says claims data is not recorded in a way that enables regional breakdowns, so a Wales figure is not readily available, and that a tax information and impact note has been published for UK-wide changes.
  • On funding, it states that agriculture funding has been added to baseline funding and "will be maintained in cash terms", is "no longer ringfenced", and that the Welsh Government decides how to use it.
  • On trade, it does not commit to the Committee's May 2026 roadmap or the May 2028 action plan. It says there is "no evidence" the Australia and New Zealand agreements have affected Welsh beef or lamb production.

Read the government's response ↗ Report an error