Labour's tax changes may cost 200,000 jobs

A new report says that Labour's changes to inheritance tax could lead to the loss of more than 200,000 jobs and £14.9 billion in economic activity. The study was conducted by CBI Economics for Family Business UK, surveying over 4,000 family businesses and farms. Experts believe these tax changes will force businesses to cut jobs, stop investments, and even sell their companies. They predict that by April 2030, about 208,500 jobs will be lost due to these changes. The report claims that instead of generating money for the government, the tax changes could actually result in a loss of £1.9 billion in tax revenue as businesses cut back on their operations. Neil Davy, CEO of Family Business UK, urged the government to rethink these tax changes. He warned that the impact would be felt by workers and communities that rely on family-owned businesses and farms. The research found that nearly 10% of family firms have already sold their business to manage the expected tax bills. Additionally, more than half of these businesses and nearly half of farms have delayed or cancelled investment plans since the Budget announcement.