Rachel Reeves is facing fresh misery following claims that changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) will result in the loss of over 200,000 jobs and a £15 billion hit to the economy. The devastating fallout from her October Budget is already being felt by businesses and farms across the UK, with many now cutting jobs, freezing investment, and even selling assets to cope with the impact of her tax hikes.

A major study commissioned by Family Business UK and carried out by independent consultancy CBI Economics reveals that almost a quarter of family businesses (23%) and 17% of family farms have already paused recruitment or made job cuts since Chancellor Ms Reeves’s Budget. With further reductions expected before the end of the Parliament, the impact of the changes to BPR and APR will ripple through the UK economy, resulting in over 200,000 job losses. CEO Neil Davy said: “The OBR assigned a ‘high’ uncertainty rating to the policy, and this research shows unequivocally that the changes will lead to job cuts and reduced investment.”

“It’s vital that the OBR reassesses its policy costing and revises its forecast accordingly.”

The report also highlights the long-term damage that Ms Reeves’s policies could inflict. More than half of family businesses (55%) and almost half of family farms (49%) have already cancelled or delayed planned investments.

More concerning still is that 12% of family businesses are now contemplating selling up entirely in order to fund the increased tax burden. The financial fallout could lead to a net fiscal loss of £1.9 billion, as businesses struggle to recover from the double blow of job cuts and falling investment.

Mr Davy continued: “Across every sector, decisions are being made right now to reduce investment, cut jobs, and even sell assets. The UK’s family-owned businesses and farms are the backbone of the economy, and their future is now at risk.”

The research also reveals a deeper economic impact for the agricultural sector, with 14% of family farms planning to sell assets and 11% downsizing their operations.

Such reductions will result in a substantial loss of income, contributing to an overall 8% decrease in employment within the agricultural sector by the time the policy changes are implemented in 2026.

The findings come as Ms Reeves prepares to deliver her Spring Statement on Wednesday. While much of the focus will be on her proposed measures to revive economic growth, including a £2 billion affordable housing plan, the devastating consequences of her tax policy changes could overshadow her efforts.

Analysts are already warning her announcement will do little to reverse the ongoing slump, with UK economic growth flatlining amid uncertainty both domestically and abroad.

Ms Reeves’ handling of the economy has come under increasing scrutiny, with critics accusing her of swinging the axe in a way that undermines long-term economic stability.

The CBI has gone as far as to warn that the UK is “headed for the worst of all worlds,” with business investment now at a standstill, and future growth prospects growing bleaker by the day.

Mr Davy said: “We’ve been calling on the Government to reconsider these policy decisions. There is still time to find a solution that both raises necessary tax revenue and ensures family businesses and farms can survive and thrive in the future. Right now, the future of many businesses across the UK is on the line.”

Speaking on Tuesday, Ms Reeves said: “She will say: “Our task is to secure Britain’s future in a world that is changing before our eyes.

“The job of a responsible government is not simply to watch this change.

“This moment demands an active government stepping up to secure Britain’s future.

“A government on the side of working people.

“To grasp the opportunities that we now have and help Britain reach its full potential, we need to go further and faster to kickstart growth, protect national security and make people better off through our plan for change.”