Reeves Inheritance Tax Changes to Cost Economy £14.8 Billion – Guido Fawkes

NEW REPORT: Reeves Inheritance Tax Changes to Cost Economy £14.8 Billion

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Independent economics consultancy CBI Economics released a large-scale analysis of Reeves’ changes to death taxation at the Budget. APR and BPR hikes will end up costing the Treasury more than they raise:

• Anticipated economic costs include Gross Value Added loss of £14.8 billion by April 2030.
• Includes the loss of 208,500 jobs by 2030.
• 55% of family firms + 49% of family farms have paused or canceled planned investments
• That’s a 16% average decrease in investment.
• Almost half of family businesses predict reduction in headcount – average decline of 9% in employment.
• Agriculture and horticulture firms foresee average turnover reduction of 11%, while real estate and construction sectors expect 9% reduction.
• Employment in construction, manufacturing, and accommodation sectors to decrease by circa 11%.
• Of the predicted 208,000 job losses 180,000 will take place in family firms – 0.7% of all UK jobs.
• 28,000 job losses will occur in the farming sector, an 8.% decrease in sector employment.

Most startlingly the analysis estimates the net fiscal impact of the tax changes will reduce Treasury tax revenues by £1.9 billion, which is just above the £1.8 billion the Treasury optimistically claims it will raise by 2030. Rendering the punitive changes completely pointless…

Read the full report below: