British business tycoon Steve Perez has cancelled £20 million investment in the UK as direct result of Labour’s Autumn Budget on 30 October.
The hotel tycoon warned the changes to inheritance tax does offer job security after he dies and does not provide any incentive to expand his business in the UK.
The entrepreneur received planning permission to add more than two dozen extra bedrooms and a spa at his Peak Edge hotel.
Perez was also looking to a new canning line at his drinks factory in Derbyshire, which was going to create 50 new jobs, this has been scrapped.
Before the Chancellor made changes to inheritance tax properties and businesses were allowed to be passed down to family members with tax paid, but from April 2026 a property valued at more than £1 million will be forced to pay 20% of IHT.
Perez told the Telegraph as a result Labour’s changes in the Budget he has “absolutely stopped” the planned works because it “would be crazy” to continue amid the tax changes.
He tore apart Rachel Reeves Budget and slammed it as “anti-entrepreneurs, anti-business.”
Perez added, “What this is going to mean is insecurity for the working person in my business because once I die, their jobs are on hold.
The business may well be sold so straight away – that gives them insecurity rather than security.
A HM Treasury spokesperson said, “With our public services crumbling, a £22bn fiscal black hole from the previous government, and 53% of Business Property Relief going to the 4% wealthiest claimants, we had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability to allow businesses to thrive.
By doing this, more than half of employers will either see a cut or no change in their National Insurance bills, there will be £22.6 billion more for the NHS, and workers’ payslips will be protected from higher tax.
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