Budget could wipe out 125,000 jobs in family businesses
The government’s move to limit inheritance tax relief for family-owned businesses could cost Britain roughly 125,000 jobs and significantly reduce economic activity, new research has found.
The change unveiled in Labour’s first Budget could reduce the value of goods and services produced across the UK economy by £9.4bn and incur a £1.3bn net loss for the Treasury between 2026/27 and 2029/30, according to a study by CBI Economics.
The latter figure contrasts with a £1.4bn gain in revenues estimated by the Office for Budget Responsibility over the same period from the change to business property relief (BPR).
BPR allows assets of privately-held firms and shares in companies listed on London’s junior stock market AIM to be passed on free from inheritance tax.
Budget could wipe out 125,000 jobs in family businesses
London Stock Exchange takeover bonanza tops £50bn
The barrage of takeover bids for firms listed on the London Stock Exchange this year has jumped to £52bn in value, fuelling fears over the health of the City’s equity markets.
A total of 45 London-listed firms have been approached, agreed to, or completed acquisitions since January, according to data provided to City AM by investment bank Peel Hunt.
Charles Hall, head of research at Peel Hunt, said the level of takeover activity among FTSE 350 businesses was “unprecedented”, with 21 bids this year.
The biggest deal is the planned £5.7bn merger of UK cardboard box giant DS Smith and US rival International Paper, followed by investment platform Hargreaves Lansdown’s £5.4bn sale to a group of private equity buyers.
London Stock Exchange takeover bonanza tops £50bn
Bank of England warns on threat of global trade barriers
Rising global trade barriers threaten to drag on global economic growth and unsettle the stability of the UK’s financial system, the Bank of England has warned today.
In its half-yearly financial stability report, the central bank said the financial system could be hit by disruption to cross-border capital flows and a reduced ability to diversify risk.
While Threadneedle Street did not refer directly to the threat of US tariffs, fears over the direction of American trade policy have grown since Donald Trump won the Presidency earlier this month.
On the campaign trail, the president-elect threatened flat tariffs of 20 per cent on all imports and 60 per cent on those from China.
Bank of England warns on threat of global trade barriers
Labour urged to scrap ‘vindictive’ farm tax as Tories set to force vote
Labour MPs are being urged to back scrapping the “vindictive” changes to inheritance tax (IHT) on farms, as the Conservative Party prepares to bring a vote on the issue.
Tory MPs are set to use their opposition day debate on Wednesday, December 4, to insist Parliament hold a vote on Labour’s controversial move for farmers to pay more IHT on land.
In Chancellor Rachel Reeves’ first Budget, she announced plans for changes to agricultural property relief (APR) and business property relief (BPR), which the Tories say could see farming families face tax bills of up to millions of pounds.
Shadow environment secretary Victoria Atkins said: “Labour’s vindictive family farm tax threatens to destroy British farming as we know it.”
https://www.cityam.com/labour-urged-to-scrap-vindictive-farm-tax-as-tories-set-to-force-vote/
