LABOUR BUDGET 'WILL COST ECONOMY £10 BILLION'

Shocking report reveals tax raid on family firms could result in 125,000 job losses

- Martyn Brown

LABOUR'S Budget raid on family firms will risk more than 125,000 jobs and cost the economy £10billion, a report claims.

Today's damning declaration by the Confederation of British Industry says the Government's inheritance tax changes will clobber family owned businesses and hurt farms.

Capping business property relief at £1million will punish smaller companies and stifle economic output, it argues.

The stark warning is the latest humiliating blow for Sir Keir Starmer in his first five months as Prime Minister. He will try to reset his stumbling premiership in a speech today following the widespread anger at Labour's tax plans and his "freebies" row.

His first months in No10 have seen the PM forced to sack Sue Gray as his chief of staff amid Downing Street infighting. And Sir Keir faced further embarrassment in recent days with the resignation of Louise Haigh as Transport Secretary when it emerged she had a criminal conviction.

Heaping further pressure on the Labour leader, the CBI economics report warns the decision to cap BPR could lead to at least 125,000 jobs losses during the term of the parliament and reduce the value of goods and services produced across the economy by £9.4billion.

The Office for Responsibility Budget estimated the changes to BPR will raise £1.4billion over the four-year period 2026/7 to 2029/30.

However, the CBI forecasts the exchequer can expect a slump in tax revenue of almost £2.7bn from family-owned businesses.