James Dyson slams ‘cruel’ inheritance tax in Budget, warns of impact on family businesses
Sir James Dyson has slammed Chancellor Rachel Reeves’ latest Budget, describing the new inheritance tax policy as a “disgusting” move that threatens the future of family businesses in the UK.
Under the changes, family-owned businesses and farms worth more than £1m will face an inheritance tax of 20 per cent from April 2026, a move Dyson argues could lead to the “death of the entrepreneur” and destroy the foundations of Britain’s economy.
Writing in the Times, Dyson accused Reeves of “killing established family businesses” with the so-called “Family Death Tax,” warning that the policy undermines long-term business continuity and discourages new businesses. “No business can survive Reeves’ 20 percent tax cut,” he said, highlighting the risk of job losses in a sector that, he says, traditionally values stability and generational commitment.
Defending the budget, Home Secretary Yvette Cooper dismissed Dyson’s claims, saying the measures were necessary to address the “appalling state of the public finances.” Cooper said the tax changes were part of a strategy to “fix the foundations” of the economy and fund essential public services, including the NHS. He stressed that, although the policy involves difficult decisions, it is important to build a strong financial base.
The inheritance tax changes come amid a £40 billion tax increase aimed at supporting the NHS and other public services. However, critics argue that the tax on family farms, which is expected to raise £520 million a year, will pay for less than a day’s worth of the NHS. National Farmers Union president Tom Bradshaw has warned of a mental health crisis among farmers, with many expressing concern that the tax could force them to sell or drastically change their businesses.
Rachel Reeves defended the inheritance tax reforms on Sunday with Laura Kuenssberg, saying that the exploitation of agricultural properties mainly benefits the “richest landowners” and is no longer sustainable given the current financial pressures. He pointed out that redirecting funds from these resources to public works will ultimately benefit everyone, including rural communities.
As rural voters and family businesses respond to the policy, labor is under pressure to balance tax reform with the unique needs of these sectors, especially ahead of local elections in May.
