The wealthy Labour accused of pulling its punches

Tax rises aimed at inherited wealth are at risk of backfiring, after the chancellor was accused of betraying small family businesses while letting private equity barons off the hook.

- Rob Davies Anna Isaac Kalyeena Makortoff

Labour's first budget in 14 years included measures to close inheritance tax loopholes and press ahead with scrapping the controversial "non-dom" tax status, as well as levying higher taxes on private jet flights.

But Rachel Reeves came under fire from campaigners for pulling her punches on the rich, while she is also facing a furious backlash from farmers and small business owners over fears that tax rises could force family firms to sell up.

From April 2026, a 20% tax rate - half the headline inheritance tax rate of 40% - will be applied to the value of farms and businesses above £1m when they are passed on.

Tom Bradshaw, the president of the National Farmers Union (NFU), said two-thirds of farms would now be subject to inheritance tax, labelling the change "disastrous". "This budget not only threatens family farms but also makes producing food more expensive," he said, adding that costs would be passed on to consumers.