Reeves ‘death tax’ to cost more than 200,000 jobs

Sunday 01 June 2025 10:00 pm
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Sunday 01 June 2025 3:01 pm

Greater than 200,000 jobs could possibly be in danger over the subsequent 5 years due to the federal government’s inheritance tax raid, new analysis suggests.

Chancellor Rachel Reeves launched sweeping modifications to enterprise and agricultural property aid within the Autumn Price range final yr, impacting family-owned enterprise and farms throughout the UK.

A examine from CBI Economics, commissioned by the foyer group Household Enterprise UK, discovered 208,500 full-time jobs could possibly be misplaced by April 2030 in consequence.

The coverage change is anticipated to boost round £1.8bn in tax income over the subsequent 5 years, however at a internet fiscal value of £1.9bn.

CBI Economics additionally discovered the tax modifications would end in a GVA lack of £14.8bn to the financial system.

Modifications to BPR and APR within the Autumn Price range restricted 100 per cent aid from inheritance tax to the primary £1m of claims, with a 50 per cent tax price utilized above this threshold.

Influence of loss of life tax ‘staggering’

Responding to the analysis, shadow enterprise secretary Andrew Griffith mentioned Labour’s proposals had been constructed on “hooky treasury maths and a blatant breach of election guarantees.

“The influence of the Chancellors loss of life tax on farms is already understood – however the influence on family-owned companies is many instances that with a staggering 200,000 jobs in danger.

“This survey reveals simply how little this authorities perceive or care about enterprise,” he added.

In whole, practically half of household companies anticipated decreasing headcount, with a mean decline of 9 per cent in employment.

Round 50 per cent anticipate to pause or cancel deliberate investments, with a complete lower of 16 per cent in funding.

The agriculture sector is anticipated to see the steepest drop in funding, averaging a 17 per cent decline, based on CBI Economics.

The Treasury has been approached for remark.