More than 200k jobs will be lost & £14.9bn wiped from economy due to Labour’s tax raid on family firms, warns report
MORE than 200,000 jobs will be lost and £14.9billion wiped from the economy as a result of Labour’s tax raid on family firms, a bombshell report warns today.
Changes to inheritance tax reliefs are already forcing businesses to cut jobs, cancel investment and sell up, according to the study by CBI Economics for Family Business UK.
More than 4,000 family businesses and farms were surveyed, with experts forecasting a loss of 208,500 jobs and £14.9billion in lost business activity by April 2030.
And rather than raising money for the Treasury, the report says the move will backfire, costing the Government £1.9billion in lost tax receipts as firms scale back.
CEO of Family Business UK Neil Davy urged the Government to reconsider, warning: “Ultimately, it will be the working people, and communities right across the country, who depend on family-owned businesses and farms who’ll pay the price.”
The research found nearly one in ten family firms have already sold up to cover the looming tax bill.
And over half of family businesses (55 per cent) and nearly half of farms (49 per cent) say they’ve paused or cancelled investment plans since the Budget.
