Tuesday, March 25, 2025
Tractor tax could cost 200,000 jobs
The paper says that the move would also cost the economy £14.9bn, according to a study by the independent consultancy CBI-Economics, which was commissioned by the group Family Business UK and looked at more than 4,000 businesses and farms across the country:
Nearly a quarter of family businesses - 23 per cent - and almost one in five family farms - 17 per cent - said they had cut jobs or halted recruitment since the planned tax was announced in the October budget.
Just under half of family farms - 49 per cent - said they have also paused or cancelled planned investments.
Ministers are ploughing ahead with their plan to make farms valued at £1m or more liable for 20 per cent inheritance tax, despite calls from supermarket giants including Tesco for a halt to the divisive policy.
The research estimates the tax hikes will see around 208,000 jobs lost by the time of the next election.
Neil Davy, the chief executive of Family Business UK, said: “Against a backdrop of huge uncertainty in global geopolitics and UK economic growth, these latest data show unequivocally the damage that is already being done to Britain’s family-owned businesses and farms and the wider economy.
“Ultimately, it will be the working people, and communities right across the country, who depend on family-owned businesses and farms who’ll pay the price.”
The policy suffered another blow last month when the Office for Budget Responsibility (OBR) warned it may raise less than the Treasury hopes, with the £500m-a year-revenue forecast given a “high” uncertainty rating and likely to fall after seven years as families use tax planning to avoid the charge.
The Treasury says with tax allowances, in reality, only farms worth £3m would be affected - which is 28 per cent of family farms. But official Defra figures appear to suggest as many as 66 per cent could be hit.
Ministers have gone out of their way to claim that less than a third of farms will be affected by this tax, but the reality appears to be very different. Yet another miscalculation by Labour.
