Family businesses in Northern Ireland are going to be “taxed to death” as a result of the UK’s Budget, DUP leader Gavin Robinson has said.
Mr Robinson’s comments come after mass protests in Northern Ireland and London over changes announced by Chancellor Rachel Reeves on October 30, which means farms worth £1m and over will be subject to inheritance tax (IHT) from April 2026.
But the East Belfast MP also strongly criticised increases in employer national insurance contributions, which add to the cost of having employees.
Mr Robinson said in his weekly email to party members today that “the devastating impact of the Labour Government’s first Budget is being felt across Northern Ireland, and the message from our communities is clear, enough is enough”.
Farmers from around Northern Ireland attended a protest in Lisburn on Monday against changes to inheritance tax
Over 6,000 people had gathered in Lisburn’s Eikon Centre to protest at the IHT change, which he called “a cruel and unnecessary blow to family farms”.
“This extraordinary turnout sent a powerful signal that rural Northern Ireland will not stand idly by as Labour punishes the very people who feed our nation,” said Mr Robinson.
The DUP leader said farmers’ message to the Chancellor was “back down, Rachel Reeves. Do what is right for farmers, food production, and the survival of our rural communities.”
But he said the IHT tax changes for farmers were “only the tip of the iceberg” and that the 1.2 percentage points increase to employer national insurance to 15% from April next year was “deeply flawed”.
“This reckless policy makes it more expensive for businesses to employ staff, forcing them into an impossible position. They either cut jobs or raise prices.
“The consequences are dire. Many local employers have told me they have no choice but to reduce staff numbers, as passing on costs to already-struggling customers would destroy their competitiveness.
“This means lost jobs, shattered livelihoods, and a blow to families who rely on these incomes to make ends meet.”
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And he said the rise in national insurance was adding £12m to the overheads for councils here, and would add £20m to the costs of the NI Civil Service.
“Guess who pays the price? Every single ratepayer when their next bill arrives.”
He called the Budget “an ideological and vindictive attack on employers dressed up as reform”.
“These measures target ambition, punish hard work, and threaten the lifeblood of our economy, family businesses.”
He said that “Northern Ireland’s farmers and small business owners deserve support”.
“They should not be taxed to death by a government interested in pursuing socialist ideology…
“We will fight these unjust measures tooth and nail. Our message to Labour is simple, stop punishing those who work hard, take risks, and contribute to society. Stop taxing our family businesses to death.”
As well as increasing employer national insurance contributions, the Budget also more than doubled the employment allowance for small businesses to £10,500.
A spokesperson for the Treasury defended the changes in the Budget.
“It delivered more money than ever before for public services in Northern Ireland through a record £18.2bn settlement for the Northern Ireland Executive, which it can allocate across its devolved responsibilities – including funding for farming – as it sees fit.
“But we also had to take tough decisions to fix the foundations and provide stability.
“In doing so, we reformed agricultural and business property reliefs – where 47% of the benefit goes to the top 7% of estates making claims – to ensure it is fairer and more sustainable.
“The increase to the employment allowance also means that more than half of employers will either see a cut or no change in their national insurance bills next year.”
The Treasury has said that any IHT liability can be paid over 10 years interest-free, and that the seven-year gifting rule remained in place, so that farms could be passed on by an owner and remain tax-free provided the donor lived on for seven years following the transfer.
And it has said that increasing the level of national insurance contributions by employers would generate £25bn for public services.