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2mo ago

Dyson Leads Business Backlash Over Labour’s Tax Hikes After Payroll Plunge

Rachel Reeves is under pressure to reverse non-dom inheritance tax reforms after data showed May’s payroll numbers fell by 109,000, the largest monthly decline in almost four years.

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Overview

  • Sir James Dyson accused the Labour government of waging a “war on aspiration” by hiking taxes on private school fees, family business inheritances and employer National Insurance contributions.
  • The Office for National Statistics reported a 109,000 drop in payroll numbers in May, marking the steepest monthly decline since the October budget.
  • AO World warned that higher National Insurance and minimum wage costs could drive jobs overseas through automation, outsourcing and relocation.
  • The Confederation of British Industry cut its UK growth forecast for 2025 from 1.6% to 1.2% and for 2026 from 1.5% to 1.0%, citing the government’s tax measures as a drag on investment.
  • Facing warnings of a wealthy exodus and economic fallout, the Treasury is considering a U-turn on its 40% inheritance tax charge for non-domiciled residents.