James Dyson criticizes Reeves' budget for harming family businesses

In the United Kingdom, significant changes to inheritance tax proposed by Labour have sparked controversy, particularly among entrepreneurs. Sir James Dyson, a prominent inventor and businessman, voiced his concerns in a recent article published in The Times, calling the reforms ‘spiteful’ and detrimental to family businesses. The measures, set to take effect in April 2026, include a raise in inheritance tax on business properties as well as a levy on farms valued at over £1 million. Dyson, notable for establishing one of Britain’s leading companies, accused the chancellor of undermining the aspirations of entrepreneurs with these tax hikes. The reforms entail a 20 percent levy on farms above the valuation threshold, along with a decrease in inheritance tax relief. This has resulted in a backlash from business owners who fear the implications for family-run farms and enterprises. The Labour party, represented by Rachel Reeves, refuted allegations of an ideological motivation behind the budget. Reeves defended the changes, asserting they were necessary adjustments in a challenging fiscal environment and not aimed at stifling aspirations. However, Dyson and others argue that discouraging the transfer of family businesses may lead to a decline in entrepreneurial spirit across the UK. As reactions continue to unfold, the implications of these reforms on the economy and future of entrepreneurship in Britain remain to be seen, leading to a broader discussion around inheritance tax policy and its role in supporting family-owned businesses.