BBC Political Reporter, Hereford & Worcester<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Chancellor Rachel Reeves has vowed to go “further and faster” to kickstart a stalling economy.<\/p>\n But ahead of her Spring Statement on Wednesday, two well-known family firms have urged her to reverse parts of her October Budget<\/a> – a rise in employer National Insurance (NI) contributions and changes to inheritance tax relief.<\/p>\n Herefordshire’s Wye Valley Brewery said it would face an “enormous” inheritance tax bill in the coming years, potentially delaying or cancelling its growth plans.<\/p>\n Worcestershire steel fabricators Underwoods said the NI increase meant it had cut back on investment plans. Reeves said the tax rises were necessary to “rebuild” public services.<\/p>\n<\/div>\n “We really need the chancellor to reconsider and then look at how she’s taxing businesses that are trying to contribute to the wider economy,” said Will Underwood, a director at 135 year-old Underwoods Steel Stockholders and Fabricators in Worcester.<\/p>\n Mr Underwood, 29, said the NI increase would add 10% to the firm’s costs overnight, with the funding pulled from planned investment projects such as new equipment and staff training.<\/p>\n<\/div>\n NI contributions for employers will increase<\/a> from 13.8% to 15% on a worker’s earnings above \u00a3175 from April.<\/p>\n That is a jump Wye Valley’ Brewery’s managing director Vernon Amor said would push up the price of its beer.<\/p>\n “This is going to be probably the single biggest increase in costs that’s going to come through this year,” he said.<\/p>\n<\/div>\n After seeing its busiest ever year of trading in 2024, this year Wye Valley Brewery celebrates its 40th anniversary.<\/p>\n But director Vernon Amor said the chancellor’s changes to inheritance tax had created a major headache for him and his father and firm’s co-owner Peter Amor, 78. <\/p>\n “When the inevitable happens, we will be faced with an enormous inheritance tax bill,” said Vernon Amor.<\/p>\n He said the total cost is likely to be more than \u00a31m.<\/p>\n<\/div>\n Prior to October’s Budget, farmers and family-owned firms were able to pass on assets from one generation to the next tax free.<\/p>\n But from April 2026<\/a>, only the first \u00a31m of an owner’s business property will be exempt. After that, it will be taxed at 20% – half the usual rate <\/a>of inheritance tax.<\/p>\n Mr Amor said a major expansion of the brewery \u2013 planned for the next three to five years \u2013 could now be delayed or partly-cancelled.<\/p>\n “Adopting this policy won’t bring in that much money to the government, but it will affect businesses like ours,” he said.<\/p>\n The Treasury has argued its changes will make the inheritance tax system fairer.<\/p>\n While estimates vary, the Office for Budget Responsibility said the projected revenue from the changes to inheritance tax relief would bring in \u00a30.5bn a year from 2027\/28.<\/p>\n<\/div>\n Rachel Reeves’ first Budget contained historically big tax rises, a move that allowed her to increase day-to-day public spending over the next two years.<\/p>\n To help bring down lengthy waiting lists, the NHS budget is due to rise by an extra \u00a322.6bn a year by 2027.<\/p>\n Part of that money will be spent on treating patients in private hospitals.<\/p>\n “It’s what they have to do to make sure they get appointment lists down to a level they can handle,” said Robert Lawrence, 80.<\/p>\n An NHS patient, he waited 14 weeks before being offered hip replacement surgery at a private hospital in Worcestershire earlier this month.<\/p>\n The average NHS waiting time for orthopaedic treatment in the county is currently 23 weeks.<\/p>\n “It’s changed my life altogether,” he said. “In way of being able to do everything around the house and look after my wife who sadly can’t walk very far.”<\/p>\n<\/div>\n Last month, the government said it had already met its election pledge to deliver two million extra appointments in its first year.<\/p>\n But there is still a long way to go.<\/p>\n More than 85,000 patients in Herefordshire and Worcestershire were on waiting lists for treatment at the start of 2025. <\/p>\n Just under 2,000 had been waiting more than a year.<\/p>\n After 43 weeks waiting for a hysterectomy, Herefordshire artist Rebecca Farkas finally had her pre-op appointment last week.<\/p>\n<\/div>\n Ms Farkas has suffered chronic pain from endometriosis since she was a teenager. <\/p>\n But last year her condition worsened and she was admitted to A&E after fibroids in her uterus caused heavy bleeding.<\/p>\n “It really affects my mental health on the waiting list because there’s not much communication,” she said.<\/p>\n “I’m also self-employed, so if I don’t work, I don’t get paid.”<\/p>\n A key Labour election pledge for the end of this Parliament is for 92% of patients to begin treatment or be given the all clear within 18 weeks. <\/p>\n This has been an official NHS target for some time but has not been met since 2015.<\/p>\n<\/div>\n<\/div>\n![\"BBC](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/b4d3\/live\/e8123c80-00e7-11f0-a925-bd0526bac592.jpg.webp\")
BBC<\/span><\/div>\n<\/div>\n![](\"https:\/\/www.bbc.com\/bbcx\/grey-placeholder.png\")
![\"Bottles](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/a362\/live\/ca8ae130-00e7-11f0-a925-bd0526bac592.png.webp\")
<\/div>\n<\/div>\nLeaving a legacy<\/h2>\n<\/p>\n
![\"Wye](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/7488\/live\/df423970-00e7-11f0-a925-bd0526bac592.jpg.webp\")
<\/div>\n<\/div>\nWhere’s the money going?<\/h2>\n<\/p>\n
![\"Robert](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/798b\/live\/cf4052f0-00e7-11f0-a925-bd0526bac592.jpg.webp\")
<\/div>\n<\/div>\nLife on a waiting list<\/h2>\n<\/p>\n
![\"Artist](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/465a\/live\/d9d3b0e0-00e7-11f0-a925-bd0526bac592.jpg.webp\")
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