Labour’s tax hit on family firms could wipe out 125k jobs – the population of Blackburn – Kemi warns
LABOUR’S tax grab on family firms risks wiping out 125,000 jobs — equivalent to Blackburn’s population, Kemi Badenoch has warned.
The Tory leader said Rachel Reeves’ inheritance tax shake-up did not just threaten farms but thousands of family businesses.
She cited research showing the changes might drain £9.4billion from the economy in three years and lead to a net loss of £1.25billion for the Treasury, with 125,000 job cuts.
Ms Badenoch took aim at Labour’s plans to scrap 100 per cent Business Property Relief on assets over £1million.
Family businesses and farms will face hefty inheritance tax bills when passed down.
At the business property relief summit yesterday, Ms Badenoch said: “It’s no good grabbing money you can see if you damage the business underneath. It will not create more growth, more profit, more taxes for the next year.”
The Tory leader pointed to research by CBI Economics which showed Labour’s changes could wipe out 125,000 jobs.
She added: “That figure is equivalent to the entire population of Blackburn. That’s a lot of people. Where are they going to go afterwards?”
It came as the Builders Merchants Federation signed an open letter to the Chancellor, warning against the changes.
Yesterday S&P Global’s composite purchasing managers’ index showed that UK growth stalled — at a reading of 50.5.
Employment slumped in December at the fastest rate since the 2009 financial crisis — excluding the pandemic — as businesses reacted to a rise in staffing costs after the Budget.
A Treasury spokesman said: “Our commitment to business is resolute. We have capped corporation tax at 25 per cent, confirmed full permanent expensing and are committed to working together to unlock more growth opportunities.”