Chancellor faces death-tax backlash from family firms

RACHEL Reeves is facing further pressure to reverse one of her key Budget tax rises, as thousands of family-run businesses demand a U-turn on inheritance tax changes.

- Christian Calgie

Thirty two trade associations, representing more than 160,000 family-run firms, have written to the Chancellor demanding a full and formal consultation on the hike.

Family Business UK, which headed up the effort, has warned Ms Reeves that her tax increase will not only clobber farmers but risks starving firms of investment and will force a number to sell up prematurely.

She also told her plans will result in job losses at a crucial time.

The Treasury claims changes to Business Property Relief and Agricultural Poverty Relief will £520million raise around a year. But independent economic forecasts commissioned by Family Business UK, conducted by the Confederation of British Industry, suggest it will cost the Treasury money.

The modelling reveals changes to BPR alone could end up losing Ms Reeves £1.25billion, as well as sacrificing 125,000 jobs.