Labour's tax raid on family farms 'could cost more than it raises for the Treasury'
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Labour's tax raid on farms could end up costing more than it raises for the Treasury, it was claimed today. Analysis by CBI Economics suggests 125,000 lost jobs from cutting inheritance reliefs for family businesses mean revenues will reduce overall. Income tax and other levies could be £2.6billion lower over the next five years, wiping out the £1.38billion Rachel Reeves hopes to raise.
![[Income tax and other levies could be £2.6billion lower over the next five years, wiping out the £1.38billion Rachel Reeves hopes to raise]](https://i.dailymail.co.uk/1s/2024/12/16/09/93187793-14196965-image-a-2_1734341477085.jpg)
The report comes as farmers ramp up their campaign for the government to rethink the Budget measures. The Chancellor announced in October that from April 2026, inherited business properties worth over £1million will be taxed at 20 per cent having previously been exempt from the duty. This will also apply to agricultural land.
Tory leader Kemi Badenoch is due to cite the CBI Economics research at a Business Property Relief summit in London later. The report comes as farmers ramp up their campaign for the government to rethink the Budget measures (pictured, a protest in London earlier this month).
Income tax and other levies could be £2.6billion lower over the next five years, wiping out the £1.38billion Rachel Reeves hopes to raise. She will warn that 'no one is safe' from Labour's tax increases, saying: 'Keir Starmer and Rachel Reeves spent months, years even, on a charm offensive to convince businesses they had nothing to fear from a Labour government.
