The businessman said he had little incentive to expand after Rachel Reeves’s budget.
Chancellor Rachel Reeves announced an inheritance tax shake-up. (Image: Getty)
A British tycoon has cancelled a £20m investment in his business – and has blamed Chancellor Rachel Reeves for his decision.
Entrepreneur Steve Perez said that the proposed changes to inheritance tax after his death did not provide much incentive to expand his businesses.
Mr Perez hoped to install a new canning line at his drinks factory in Chesterfield, Derbyshire – which he claims would have created 50 jobs there.
He also recently gained planned permission to add more than two dozen new bedrooms and a spa to his Peak Edge hotel, which is just outside the town.
However, proposals in the 2024 Budget to change inheritance tax relief mean he has stopped the expansions.
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The Peak Edge Hotel in Derbyshire. (Image: Google)
Under the previous system, properties used for business could be passed down to descendants without any inheritance tax.
However, from April 2026 any property worth more than £1million will have to pay a 20% levy.
Speaking to the Telegraph, Mr Perez said he had “absolutely stopped’ the work and ‘would be crazy’ to go ahead.
Slamming the Budget as “anti-entrepreneurs, anti-business”, he added: “What this is going to mean is insecurity for the working person in my business because once I die, their jobs are on hold.
“The business may well be sold so straight away – that gives them insecurity rather than security.”
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He slammed the Budget as ‘anti-entrepreneurs, anti-business’. (Image: Getty)
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Responding to the Telegraph, a HM Treasury spokesperson said the government is committed to delivering economic growth by boosting investment in Britain.
They added: “With our public services crumbling, a £22bn fiscal black hole from the previous government, and 53pc of Business Property Relief going to the 4pc wealthiest claimants, we had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability to allow businesses to thrive.
“By doing this, more than half of employers will either see a cut or no change in their National Insurance bills, there will be £22.6bn more for the NHS, and workers’ payslips will be protected from higher tax.”
