Rachel Reeves’s inheritance tax raid could lead to more than 200,000 job cuts, economists have warned. They said that changes to agricultural property relief (APR) and business property relief (BPR) will contribute to more than 208,000 jobs being lost by the end of the Parliament and gross value added (GVA) being reduced by £14.9 billion.

Neil Davy, CEO 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. Across every sector, decisions are being taken now to cut jobs, reduce investment and sell assets threatening the future of thousands of businesses farms and the sustainability and security of UK farming and food production. 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.

“But it’s not too late for these policy decisions to be reviewed or reversed. For months we have called on government to consult with us and our members in a meaningful way to find a workable solution that mitigates damaging impacts of the changes to BPR and APR on family firms whilst simultaneously raising additional tax revenue for the Treasury and re-incentivising family businesses and farms to invest, recruit and create long-term growth. We would still welcome that opportunity.”

More than 4,000 businesses and farms across the UK took part in the research, commissioned by Family Business UK and conducted by independent consultancy CBI-Economics.

This makes it the largest study yet into how the family business and farming sectors will respond to measures announced in the Budget with more than 4,000 businesses and farms across the UK taking part.

Almost a quarter (23%) of family businesses and almost one in five family farms (17%) have cut jobs or paused recruitment since the Budget, the research showed.

More than half (55%) of family-owned businesses and just below half (49%) of family farms have paused or cancelled planned investments since the budget and will continue to cut both investment and jobs before April 2026 when the changes to BPR and APR come into force.

Ms Reeves in October announced that from April 2026, combined agricultural and business property assets up to £1 million will still receive 100% relief but anything above that will be taxed at an effective rate of 20%.

The Daily Express has called for the Government to U-turn on its decision through the Save Britain’s Family Farms Crusade.

A Government spokeswoman said:“Our commitment to farmers remains steadfast.

“This Government are investing £5 billion into farming, the largest budget for sustainable food production in our country’s history. We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production.

“Our reform to Agricultural and Business Property Reliefs will mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach which helps fix the public services we all rely on.”