CBI boss warns Reeves’s farm tax raid could hobble Britain’s economy

Rachel Reeves Plan to reduce the relief of the inheritance tax for farmers risking growth and destabilizing the broader economy, according to Rain Newton-Smith, President of the British Industry Union (CBI).

In his speech to the National Farmers Union (NFU) on Tuesday, Newton Smith criticized the advisor’s decision to reduce agricultural property-clearly exempting farms from the inheritance tax-as a “raid of 500 million pounds” that led to a collapse in industry confidence.

Under the revised policy, to be held in April, the IHT is the IHT on agricultural properties will reach 20 percent. The president of CBI argues that this places the “basic sector” of agriculture in danger and can threaten food security in Britain: “fifty -eight percent of the foods consumed in the UK come from farmers in the United Kingdom.” “To ensure a flexible economy, we need a strong agricultural society.”

While REEVES claims that the measure is necessary to enhance tax revenues, critics refer to the incompatible impact on the companies run by the family. Newton Smith warns thousands of farmers who are forced to sell land or assets to cover these new costs. CBI research estimates that similar discounts in relief may cost up to 125,900 jobs by 2030 and may ultimately lead to a net loss of 1.26 billion pounds of the treasury.

Tom Bradche, NFU president, says it is an alternative to an alternative: IHT imposed only if the farm's assets are sold within seven years of the death of the owner. He claims that this approach will protect farmers from incurring penal taxes on non -liquid assets. However, Bradchu told the delegates that the Treasury has effectively rejected the proposal, leaving the farmers with disappointment and determination to “fight the family farm tax so that the ministers do the right thing.”

Environment Minister Steve Reed is expected to face questions from NFU members at the conference. While pledged to make agriculture more profitable, political pressure continues to grow on Reeves before the budget responsibility office office. The new financial rules of the consultant are covered to daily spending with tax receipts, leaving a small few in the budget if this iHT repair is harmful to long -term revenues.

Meanwhile, Newton Smith insists on an urgent dialogue before leaving thousands of agricultural families in the face of financial pressure. She said: “Any plan for growth or industrial strategy will fail if we do not review our founding sectors first.”