Andy Burnham, the new Prime Minister, is facing pressure to scrap inheritance tax changes affecting family-owned businesses and farms, and to rule out further tax increases on business ownership. Research from campaign group Family Business UK (FBUK) found that around half of family firms want the government to address falling confidence, investment and employment by reversing former Chancellor Rachel Reeves' decision to impose the levy, which critics say threatens generations of hard work built up in family enterprises.

The tax, introduced by Reeves, applies a 20 per cent inheritance tax rate to family businesses and farms, and FBUK argues it has become a drag on growth and employment as firms hold back on investment amid ongoing uncertainty. Business leaders are also urging Burnham and his Chancellor to rule out raising capital gains tax and corporation tax, amid fears he may hike CGT to help fund spending commitments and a growing benefits bill. FBUK chief executive Neil Davy said the policy represents an "existential threat" to Britain's five million family businesses and called on the new administration to use its first 100 days to reverse the changes and restore business confidence.