Labour’s Budget threatens 125,000 jobs with £10billion wiped off the economy, analysts warn

AROUND 125,000 jobs are at risk thanks to Labour’s inheritance raid, analysts have warned.

And almost £10billion may be wiped off the economy due to the cap on business property relief at £1million.

LNPRachel Reeves has been urged to change tack in the latest bout of anger at her tax-raising package[/caption]

Family firms last night urged Chancellor Rachel Reeves to change tack in the latest bout of anger at her tax-raising package.

Farmers are already furious about a similar inheritance raid announced in the Budget, with the Tories forcing a Commons vote on the issue on Wednesday.

More than 5,000 family firms are set to incur inheritance tax by 2030 by passing down their £1million-plus businesses.

CBI Economics said this would result in average investment reductions of 16.5 per cent — and staff cutbacks of 10.2 per cent.

Its research projects some 125,678 jobs will be at risk by 2030 and slashing the value of the economy’s goods and services by £9.4billion.

Neil Davy, at Family Business UK, said: “Changes to BPR announced in the Budget will fundamentally remove incentives among owners of family firms to invest in their businesses and it may threaten their viability.”

William Lees-Jones, of independent brewer JW Lees, said: “For us to have to divert funds into dividends to pay inheritance tax would inevitably reduce future investment in the firm.”

A Treasury spokesperson said “We had to make difficult choices to fix the foundations of the country and restore economic stability for businesses to thrive.”

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