Sir James Dyson recently criticized Chancellor Rachel Reeves for her inheritance tax changes, accusing the Labour government of harming family businesses. Dyson, who owns Dyson Farming, a company that produces crops across the UK, expressed his concern over the impact of the tax raid on family businesses. He mentioned that the changes in inheritance tax reliefs for the farming sector and business property will have catastrophic consequences for the industry.
In a statement to The Times, Dyson emphasized the detrimental effects of the 20% tax grab on homegrown family businesses, stating that it will be the death of entrepreneurship. He expressed empathy for small businesses and start-ups that will suffer as a result of the tax increase. Dyson’s sentiments were echoed by other figures in the industry, including Jeremy Clarkson and Kirstie Allsopp, who criticized the Chancellor for her decision.
Clarkson, known for his show “Clarkson’s Farm,” called out the government for shafting farmers with the inheritance tax change, urging farmers to hold on for five years until the current government is replaced. Allsopp, a presenter on “Location, Location, Location,” condemned the decision as well, highlighting the government’s lack of understanding of rural voters’ concerns.
The inheritance tax changes, set to take effect in April 2026, will impact assets over £1 million, subjecting them to a 20% tax rate. This levy poses a significant threat to the intergenerational transfer of farms and businesses, potentially leading to financial difficulties for many families in the sector. Despite the Chancellor’s reassurances that only a small number of properties will be affected, the farming community remains apprehensive about the future implications of the tax reforms.
Overall, the criticism from prominent figures like Sir James Dyson, Jeremy Clarkson, and Kirstie Allsopp underscores the growing discontent within the agricultural sector regarding the Labour government’s tax policies. The concerns raised about the impact on family businesses and the intergenerational transfer of assets highlight the need for a more balanced approach to taxation that supports entrepreneurship and sustainable economic growth.
