
Lush executive Jack Constantine has accused Chancellor Rachel Reeves of “asset stripping” businesses following the government’s changes to inheritance tax.
The chief digital officer, who is the son of co-founders Mark and Mo Constantine, told The Telegraph that the government was “sucking” profits out from companies and pushing them away from being entrepreneurially run.
In last year’s Budget, Reeves revealed plans to reduce the relief entrepreneurs can claim when passing their company on to their children with any assets above £1m subject to a 20% tax.
The new measures coming into force in April 2026 are expected to affect Lush, which is majority-owned by the Constantine family.
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Constantine said: “Unfortunately for us, if you look at it, it feels as if this is effectively asset-seizing. We’re basically building the business here, and then you’re just stripping these assets away. There’s no option. There’s nothing a business can do about it. It’s out of our hands.”
The executive said the inheritance tax changes would force more companies to explore going public and undermine family businesses.
“With these tax implications, businesses might be forced into a situation where they need to go public, they need to find funds to [pay the inheritance tax bill],” he said.
“It’s pushing businesses away from being entrepreneurially run and privately owned.”
Last week, it emerged that the owners of Lakeland are exploring a possible sale of the kitchenware chain after more than 60 years, ahead of the tax rises in April.
The retailer, which is controlled by the three sons of founder Alan Rayner, is understood to be working with advisors at Teneo to scout prospective buyers.
Constantine’s comments come as Lush prepares to mitigate the £6m added to its workforce bills following changes to employers’ National Insurance contributions and higher minimum wage.
The retailer increased its prices by 3.8% at the start of the year, which it blamed on the rise in staff and ingredient costs.
Lush slipped to a £30m loss in the year to June 30 2023, widening from a £4.1m loss a year earlier.
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