Kemi Badenoch will warn on Monday of the “devastating” impact of Rachel Reeves’ “family farm tax” on the rural economy, as campaigners hold a mass rally in London against the changes.
The Conservative leader will tell attendees that Labour has “unleashed the worst raid on family business in living memory”.
She will claim that “no one is safe” and reference “chilling” figures released earlier this month by Family Business UK that changes to Business Property Relief could lead to 125,000 job losses.
The reforms which, similar to agricultural property relief, mean owners of family firms will have to pay Inheritance Tax if they want to pass shares or other assets to the next generation. It could reduce economic activity by £9.4bn and see the Treasury lose out on £1.3billion by 2030, according to calculations the group commissioned from CBI Economics.
Speaking at the Business Property Relief Summit at the London Palladium, hosted by the group that organised the recent #SaveFamilyFarms rally in London, Ms Badenoch will say: “The impact of Labour’s Budget has been devastating.
“They claimed taxes wouldn’t need to rise to spend more on public services… then within weeks of taking office, they unleashed the worst raid on family business in living memory.”
She will add: “No one is safe. Businesses small and large. Rural and urban. Whether they make goods or provide services.”
And she will compare the warning that the changes could lead to 125,000 job losses to “the entire population of Blackburn.”
The Conservatives said farming businesses would be devastated by the removal of both Agricultural Property Relief and Business Property Relief.
The wider rural economy would also be hit by the changes to BPR, including farm shops, family haulage firms, food and drink businesses, including breweries and distilleries, local butchers and hospitality companies.
The party pointed to recent polling by the Country Land and Business Association that almost 60 per cent of people believe that family businesses, such as farms, should be exempt from inheritance tax.
Shadow rural affairs secretary, Victoria Atkins, said: “Labour’s Budget of Broken Promises is already hitting the rural economy hard. On Monday, I will be joining representatives from farming and rural businesses at a Family Business Summit at the London Palladium. Rural folk are coming to London – again – to try and make the Labour government listen to them.
“From farming to hospitality and haulage, Labour’s vindictive policies are causing carnage. Thousands of businesses that should be focusing on growth and the future and going through the anguish of knowing that Rachel Reeves’ policies risk their businesses having to be broken up and sold off.”The Treasury has been approached for comment.
