An expert has slammed Rachel Reeves over tax changes that could see a £15billion hit to the economy. A report, conducted by CBI Economics, has shown that inheritance levy changes also risk more than 200,000 jobs, after the Chancellor’s Autumn Budget introduced changes to how Business Property Relief (BPR) and Agricultural Property Relief (APR) will be applied to family-owned enterprises. Steven Mulholland, CEO of the Construction Plant-hire Association (CPA), told the Express: “This report clearly demonstrates the damage that changes to Business Property Relief will inflict on family-run businesses, not only in the construction sector but throughout the wider economy.

“The numbers speak for themselves: 208,000 jobs lost, £15billion in lost economic activity, and a nearly £2billion net fiscal loss for the Government. Family-run businesses are the backbone of our economy and communities – they invest locally, create jobs, and drive growth. It is deeply irresponsible for the Government to proceed without a proper impact assessment.

Steve Mulholland has criticised the Chancellor’s policy (Image: Steve Mulholland)

“If Labour is serious about delivering growth, it must urgently take stock and launch a proper consultation into the real-world consequences of its policies and reverse them – before irreversible damage is done.”

From April 2026, 100% relief from inheritance tax (IHT) will be limited to qualifying assets worth £1million.

Above this threshold, IHT will be applied at a reduced rate of 50%, which those representing family businesses claim is “effectively a 20% rate of inheritance tax”.

“These changes will have a material impact on family-owned businesses and farms,” Family Businesses UK says.

CEO Neil Davy said: “Far from increasing tax receipts into the Treasury and stimulating the economic growth the Government is trying to deliver, the changes to BPR and APR in the October 2024 Budget achieve the opposite; a reduction in tax receipts to the Treasury of almost £1.9billion, a reduction in GVA of nearly £15billion, and the loss of more than 200,000 jobs across the UK over the course of this Parliament.

“The analysis shows the enormous impact this policy will have across the UK.

“No industry, sector, region or constituency will be immune from these effects.

“Parts of Government are looking at how to boost regional growth and create opportunities in left-behind communities, but this report shows how the decision by HM Treasury will actively damage and undermine those efforts.

“FBUK, and others, have called for a reversal of this policy decision and full consultation with our Members.

“We have repeatedly tabled amendments, concessions and alternative proposals. All have been rejected by the Government.”