Commenting on the Spending Review, Neil Davy, Chief Executive of Family Business UK said: “We welcome investment in vital public services like housing, the Health Service and defence but question how the commitments laid out in the Spending Review will be paid for.
“More than ever, the Government needs a growing economy to deliver the tax revenues to match the spending ambitions. But FBUK research published last week has demonstrated how an apparently simple change to inheritance tax for family businesses will reduce tax receipts and cost the Treasury £1.9bn over the course of the Parliament.
“Without a rethink and proper consultation on policies like this our concern, and that of family business owners across the country, is that the Government will be coming back in the Autumn to hit businesses with even more tax increases.”