Reeves urged to maintain family business tax reliefs amid job fears

In the UK, a recent analysis by CBI Economics highlighted significant potential economic repercussions if the government eliminates tax reliefs for family-owned businesses. The study indicates that discontinuing benefits such as inheritance business tax relief and gift holdover relief could result in job losses estimated at 391,000 over the next five years. This alarming figure comes from a survey of over 600 family businesses, revealing that nearly 30% would consider workforce reductions in response to the removal of these tax benefits. Additionally, 48% of respondents indicated they would cut back on investments in the absence of such reliefs. The financial implications of scrapping these tax reliefs could total around £29 billion, underscoring the reliance of these businesses on governmental financial support. The analysis has raised concerns among stakeholders regarding the potential for diminished economic growth and job security within the sector. Business leaders and advocacy groups are urging the government to maintain these tax benefits as a means to sustain not only family-run enterprises but also the broader economy. Amid fears of the short- and long-term economic impact, maintaining current tax relief provisions is seen as crucial to protect jobs and encourage investment. As the budgetary decisions loom, the findings of this report amplify calls for a balanced approach that considers the significant role family businesses play in driving economic stability and growth in the UK.