Rachel reeves' inheritance tax raid 'to cost 200,000 jobs in next five years'

Over the next five years, more than 200,000 jobs could be in jeopardy due to the government's inheritance tax raid, according to recent research. Last year, Chancellor Rachel Reeves

implemented extensive changes to business and agricultural property relief in the Autumn Budget, affecting family-owned businesses and farms across the UK, as reported by City AM. A study

conducted by CBI Economics, commissioned by lobby group Family Business UK, discovered that by April 2030, 208,500 full-time jobs could potentially be lost as a result. The policy alteration

is projected to generate approximately £1.8bn in tax revenue over the next five years, but at a net fiscal cost of £1.9bn. CBI Economics also determined that the tax modifications would

lead to a GVA loss of £14.8bn to the economy. In the Autumn Budget, alterations to BPR and APR restricted 100 per cent relief from inheritance tax to the first £1m of claims, with a 50 per

cent tax rate applied above this threshold. IMPACT OF DEATH TAX 'STAGGERING' Shadow business secretary Andrew Griffith responded to the research, stating that Labour's

proposals were based on "hooky treasury maths and a blatant breach of election promises." "The impact of the Chancellors death tax on farms is already understood – but the

impact on family-owned businesses is many times that with a staggering 200,000 jobs at risk." "This survey shows just how little this government understand or care about

business," he added. In total, nearly half of family businesses anticipated reducing headcount, with an average decline of nine per cent in employment. Approximately 50% of businesses

are considering halting or cancelling their planned investments, leading to an overall investment reduction of 16%. The agricultural sector is anticipated to experience the most significant

investment decline, with an average decrease of 17%, as reported by CBI Economics. A Treasury spokesperson commented: "Our reforms to Agricultural and Business Property Reliefs will

mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most estates pay, and payments can be spread

over 10 years, interest-free." "This is a fair and balanced approach which helps fix the public services we all rely on." "Capping the rate of corporation tax, reforming

planning, establishing a National Wealth Fund and creating pension megafunds is part of our Plan for Change to get Britain building, unlock investment and support business so we can raise

living standards and make all parts of the country better off." LIKE THIS STORY? WHY NOT SIGN UP TO GET THE LATEST BUSINESS NEWS STRAIGHT TO YOUR INBOX.