The recent budget announcement draws sharp criticism from Sir James Dyson, focusing on the proposed inheritance tax changes.
- From April 2026, family-owned businesses and farms worth over £1 million will be subjected to a 20% inheritance tax.
- Dyson labels the tax as a ‘Family Death Tax’, warning it could dismantle family businesses and hinder economic growth.
- Home Secretary Yvette Cooper defends the measure, stating it is necessary to fix public finances and support essential services.
- The policy faces backlash amid fears of devastating impacts on the rural economy and family-owned enterprises.
In a bold critique of the proposed budget, Sir James Dyson has voiced strong opposition to the introduction of a 20% inheritance tax on family-owned businesses and farms valued over £1 million, slated for April 2026. Dyson warns that this tax could spell the end for entrepreneurship in the UK, describing it as a ‘Family Death Tax’. His remarks highlight concerns that this measure may dismantle vital family enterprises, which form a cornerstone of the British economy.
Writing for The Times, Dyson expressed fears that these tax changes could lead to significant job losses within a sector known for its stability and generational loyalty. He argues that no business can withstand such a financial burden, cautioning against the broader economic repercussions of this policy.
In a bid to quell criticism, Home Secretary Yvette Cooper has justified the tax as a strategic move to address the dire state of public finances. Cooper insists that these changes are essential to strengthen the economic foundations and to fund critical services like the NHS. While acknowledging the challenges posed by these decisions, she emphasizes their importance in building a robust financial future.
The budget includes a historic £40 billion tax increase intended to bolster the NHS and other public services. However, critics, including the National Farmers Union, argue that the tax on family farms will raise less than a day’s worth of NHS spending annually, raising alarms about its effectiveness and impact.
Tom Bradshaw, President of the National Farmers Union, voiced concerns over the mental health crisis this tax could trigger among farmers. He warned that many would be compelled to sell or drastically change their businesses, upsetting the rural economic balance.
Meanwhile, Rachel Reeves defended the changes, arguing that agricultural property reliefs disproportionately benefit wealthier landowners. She posited that reallocating these funds would serve the greater good, ultimately supporting all communities, including rural ones. However, as this policy unfolds, Labour faces the challenge of balancing necessary tax reforms with the unique needs of rural sectors, especially in the lead-up to local elections.
The contentious inheritance tax proposal underscores the tension between economic reform and the preservation of traditional family businesses.
