Jack Constantine, chief digital officer at beauty retailer lush, has accused chancellor Rachel Reeves of “asset stripping” businesses, according to the Telegraph.

Speaking to the newspaper Constantine, who is the son of Lush’s co-founders Mark and Mo Constantine, said the government was “sucking profits” from businesses with its tax policies.

In October last year, Reeves announced plans to reduce the tax allowance for entrepreneurs passing on their businesses to their children.

From April next year, business rates relief will only apply to the first £1 million of business assets on the death of a shareholder with everything above this level subject to tax of 20 per cent.

Previously, business owners could pass on their business and its assets to their children without paying inheritance tax.

Simon Constantine and Claire Constantine, son and daughter of Lush’s co-founders, also hold roles in the business.

Commenting on the interview on his LinkedIn profile, Jack Constantine said that family businesses are the “cornerstone” of innovation and policy makers need to support them if they want a thriving economy not “asset strip them under the guide of reform.”

“It feels like a slap in the face to generational businesses that have spent decades, if not centuries, building something meaningful in the UK,” he added. “It’s frustrating to watch policies that seem designed to strip away the very foundations of long-term growth, all while they claim it’s ‘for the greater good.’”

He continued. “At Lush, we’ve always taken pride in contributing to communities, creating jobs, and thinking sustainably—but these changes make it feel like we’re being penalized for doing the right thing. And while the banks politely suggest we ‘find opportunities in these challenging times,’ it’s hard to see the opportunity in being taxed out of existence.”

Earlier this month, supermarkets including Aldi, Asda and Morrisons announced they are backing the National Farmers’ Union (NFU), which has urged the government to halt plans for restrictions to inheritance tax relief for farms.

The new plans, outlined in chancellor Rachel Reeve's Autumn Budget, will see 100 per cent relief from inheritance tax restricted to the first £1 million of combined agricultural and business property from 6 April next year.

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