Month: June 2025

S&W Becomes Silver FBUK Partner

Posted on by Martin Greig

Family Business UK and the accountancy and advisory firm S&W have agreed a new silver-level Corporate Partnership.

Founded in 1881, S&W is a top 10 UK accountancy firm, supporting more than 23,000 clients from their 17 offices across the country.

Neil Davy, CEO FBUK said

“I am delighted to welcome S&W to Family Business UK adding their knowledge, expertise and counsel to our own, and supporting our Members in building Britain for generations.

“Our Corporate Partners are critical allies in our work. Together, we can better support our Members to navigate the challenges they face today and build strong, innovative family businesses for tomorrow.”

As a silver-level Partner of FBUK, S&W will help deliver thought leadership and meaningful content and guidance to the family business community.

Laura Hayward, Partner S&W added

“We are thrilled to join Family Businesses UK as a new Corporate Partner, joining a movement of businesses and supporters advocating for family businesses and their positive impact in the UK.

“S&W’s partners and professionals are devoted to supporting family businesses through every stage of their journey helping them navigate challenges, unlock potential and achieve the extraordinary.

“We look forward to championing these remarkable businesses that drive innovation, generate employment, and stimulate economic growth across the UK.”

Government’s Industrial Strategy brings welcome clarity – but risks over BPR and APR remain

Posted on by Fiona Graham

By Tom Ridgway, FBUK Public Affairs Manager

The Government’s Industrial Strategy, published today, offers a much-needed framework for growth and investment.

With tangible commitments across eight high-growth sectors (Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital Technologies, Financial Services, Life Sciences, and Professional and Business Services), the Strategy gives businesses a clearer sense of the Government’s ambition for growth – helping them to plan, invest and identify new opportunities over the long term.

This clarity is welcome. After years of uncertainty, family business owners finally have some of the tools they need to make confident decisions for the future.

We particularly welcome the planned Small Business Strategy and the launch of a new Business Growth Service. Both have been shaped with significant input from FBUK and our members, and we look forward to working with the Government on the detail in the weeks ahead.

The Industrial Strategy also includes plans to cut energy costs for thousands of businesses by exempting them from some green energy levies.

Plans for a new British Industrial Competitiveness Scheme could cut costs by up to £40 per megawatt-hour from 2027 for more than 7,000 manufacturing firms by exempting them from extra charges that currently support green energy initiatives.

500 of the most energy-intensive businesses will also have their network charges cut by raising the 60% relief through the British Industry Supercharging Scheme to 90% from next year.

Manufacturers in the UK currently pay some of the highest electricity prices in the world and many family-run businesses are still recovering from the energy price shock in 2022. While further support for businesses struggling to pay their energy bills is welcome, the full picture of exactly which businesses will qualify under this scheme is yet to emerge. FBUK will continue to work closely with decision-makers in our call to widen existing support for businesses struggling with high energy costs.

FBUK has long called for a greater focus on upskilling the British workforce and it is welcome to see the Government commit an extra £1.2 billion each year on skills by 2028-29, including £275 million earmarked for technical training and apprenticeships for priority sectors like advanced manufacturing. This will help family-run businesses to build a stronger pipeline of talent, boost productivity, and ensure they have the skilled workforce needed to grow and compete in a changing economy.

While FBUK are fully supportive of the Government’s mission for growth, the Industrial Strategy will only succeed if it is underpinned by a stable and consistent tax policy. The Government’s pro-growth mission cannot be delivered while family businesses face disincentives to invest, recruit, and pass on ownership.

In particular, we remain deeply concerned about the impact of changes to Business Property Relief (BPR) and Agricultural Property Relief (APR).

Our latest research shows these changes could lead to:

  • 208,500 job losses
  • A £14.9 billion drop in economic activity (GVA)
  • A £1.9 billion loss in tax revenue

Since the last Budget, more than half of the UK’s family businesses have paused or cancelled planned investment. A quarter have reduced headcount or shelved recruitment altogether.

Without urgent consultation, these measures risk forcing premature sales of family firms, stalling job creation and undermining the very goals set out in the Industrial Strategy.

The Government’s long-term ambition is the right one. But it must be matched by tax policy that supports – not penalises – the businesses driving growth in every sector, across every region of the UK.

FBUK Magazine Edition 3 Published

Posted on by Martin Greig

Hot off the press, the latest edition of the Family Business UK magazine has been published and is available to download digitally.

Coming at a pivotal moment for family businesses, with important policy changes creating an uncertain outlook, this edition explores some of the key issues you should consider when planning for the journey ahead.

Download the FBUK Magazine

In this edition you’ll find:

  • Steve Rigby – the Chair of FBUK on his ‘North Star’ for FBUK,
  • Views from Westminster including:
    • Gareth Thomas MP the Minister for Services, Small Businesses and Exports,
    • Andrew Griffith MP the Shadow Secretary of State for Business and Trade,
    • Daisy Cooper MP the Deputy Leader of the Liberal Democrats and the Party’s Treasury Spokesperson,
  • William Lees-Jones – Managing Director of JW Lees on campaigning against the changes to BPR,
  • Sarah Dean – Chair of Noble Foods on leading with purpose and the importance of staying true to your values,
  • FBUK Corporate Partners Farrer & Co, Clarion and PwC give their tips on what you need to do to plan for the changes to BPR and APR.
  • We mark 500 years of family business history with FBUK Members Neville Trust (150 years) and Morning Foods (350 years),
  • Caroline Platt shares her lessons from conquering daring adventure challenges and
  • Holly Thallon Steenson on her journey into the family business.

All this, and you can read about our latest research looking at the impacts of the changes to BPR and APR.

Get Involved

If you’ve got news to share, an issue you think we should be covering or perhaps you fancy writing an article yourself, reach out and get in touch with a member of the team.

Advertise in the FBUK Magazine

Would you like to advertise your business and services to some of the UK’s premier family business owners? You can find more information below about securing space in future editions of the magazine. And, if you’d like to talk to us about other advertising, sponsorship and partnership opportunities, we would love to hear from you. You can contact a member of the team here.

Download our media pack

Spending Review – all eyes turn to the Budget

Posted on by Fiona Graham

By Martin Greig, FBUK Communications Director

The Government’s Spending Review this week has set out day-to-day spending on public services and capital investment across this Parliament. 

In total, the Government has committed to increase spending by £190 billion and investment by £113 billion. The Chancellor has called it a “Labour choice” that will put Britain on a path to “national renewal.” 

Departments like health and defence have been prioritised whilst others like the Home Office and the Foreign Office face sizeable cuts to their budgets.  

Investment in services like health and defence are vital. Spending here will benefit the country and communities up and down the UK. As will investment in technology, transport and infrastructure. But whilst we welcome this, we are left wondering how these commitments will be paid for. 

Less than 24 hours after the announcement, the UK economy registered the largest contraction in GDP for more than two years triggered by a record fall in exports to the US (ahead of the Trump Tariffs), increases to NICs, the Living Wage and ahead of changes to BPR and APR. 

A growing economy is central to the Government delivering these spending plans. But our research on the changes to BPR and APR shows this single policy change will contribute significantly to the opposite outcome: 

  • 208,500 jobs losses 
  • £14.9 billion reduced economic activity (GVA) 
  • £1.9 billion tax loss 

Since last Autumn’s Budget half of family business owners have paused or cancelled investment and a quarter reduced headcount or shelved recruitment plans.  

Businesses grow the economy but their confidence, ability and willingness to invest and recruit have been sapped by the choices made by the Government. 

There is also mounting speculation the Office for Budget Responsibility will again have to downgrade its forecast for UK economic growth. And, in the absence of growth, the Government will be left with little alternative but to make unpalatable choices … the most likely of which will be to raise taxes, again. 

Short of the Government breaking manifesto commitments to not increase income tax, employees national insurance or VAT, it is likely the Government will again turn to marginal areas of business taxation which have the potential to do enormous damage without full consideration. 

The one area in which we absolutely support government is its priority to deliver economic growth and improve the lot of working people around the country. We support this completely – as do private and family business owners across the country. But bad policymaking that hinders Britain’s private and family-owned businesses will not achieve this outcome.  

Which leaves us, and others, speculating that businesses could be facing another round of tax increases in the Autumn. 

FBUK Comment on Spending Review

Posted on by Fiona Graham

Commenting on the Spending Review, Neil Davy, Chief Executive of Family Business UK said: “We welcome investment in vital public services like housing, the Health Service and defence but question how the commitments laid out in the Spending Review will be paid for.

“More than ever, the Government needs a growing economy to deliver the tax revenues to match the spending ambitions. But FBUK research published last week has demonstrated how an apparently simple change to inheritance tax for family businesses will reduce tax receipts and cost the Treasury £1.9bn over the course of the Parliament.

“Without a rethink and proper consultation on policies like this our concern, and that of family business owners across the country, is that the Government will be coming back in the Autumn to hit businesses with even more tax increases.”

New Research Shows Full Impact Of IHT Changes

Posted on by Fiona Graham

UK-wide hit to the economy as family businesses in every sector and region of the country cut investment and jobs ahead of inheritance tax change

The full impact of changes to inheritance tax for family businesses and farms is revealed in new research showing every region of the UK and sector of the economy will be hit by the Government’s decision to change Business Property Relief (BPR) and Agricultural Property Relief (APR).

The research from Family Business UK (FBUK), supported by 32 trade associations, is the most comprehensive analysis yet of how family business owners are likely to respond to the policy change.

The analysis, which has involved 4,174 businesses and farms and conducted by CBI Economics, the independent consultancy arm of the CBI, shows that for family businesses affected by the change to BPR, investment is likely to fall most across Yorkshire and the Humber (-17%) and the East of England (-17%) while job losses will be greatest (-10%) in parts of Scotland, the North West and North East of England.

For businesses and farms impacted by changes to APR the steepest cuts to investment are expected in Northern Ireland, the Midlands and the North East of England (-17%) while headcount could be reduced by between 10% and 12% across the North West and North East of England.

Local and regional-level analysis shows just how significantly communities and supply chains supported by family-owned businesses could be affected. The latest research also assesses the impact in every Parliamentary constituency across the UK. Parts of Cornwall and Aberdeenshire could be hardest hit by the changes as both areas are expected to see sharp falls in jobs and GVA as a share of their local economies. Five of the ten most badly affected Parliamentary Constituencies for job losses are in Cornwall including: St Austell & Newquay, North Cornwall, South East Cornwall, St Ives and Cambourne & Redruth (see notes for tables on regional, and top 10 constituency impacts).

Following the announcement of changes to BPR and APR in the Autumn Budget, owners of family business and farms have taken immediate steps to mitigate the effects of the policy change. Key findings show:

  • Over 60% of businesses anticipate reducing investment by more than 20%, with average investment declines of 15.8% (APR) and 15.5% (BPR).
  • Around a quarter (23%) have reduced headcount due to BPR and APR changes.
  • Business restructuring is a growing concern: Around 1 in 5 are considering downsizing under both BPR and APR, with up to 12% contemplating a sale.
  • Reduced community support: 15% (BPR) and 12% (APR) of businesses have cut charitable donations or community activities, which will impact vital local initiatives.

By the end of this Parliament, the research shows that changes to BPR and APR could lead to:

  • 208,500 jobs losses from family businesses and across their supply chains
  • £14.86 billion less economic activity (GVA) – almost equivalent to the value of UK motor vehicle manufacturing (£15.7bn GVA)
  • a £1.87 billion net fiscal loss to government

Neil Davy, CEO Family Business UK said: “This latest research shows just how far-reaching, and immediate, the impact of these policy changes is. No industry, sector, region or parliamentary constituency will be immune.

“In construction, services, manufacturing, tourism, transport, agriculture and horticulture, family business owners are responding to the changes to BPR and APR by tearing up long-term plans to invest in their businesses, their employees and the communities in which they are based.

“While parts of government are looking at how to boost regional growth and create opportunities in every sector of the economy, this research shows how changes to BPR and APR will achieve the exact opposite.”

“Within our diverse and rapidly changing economy, family business owners have been building Britain for generations. If they are to continue to do so, with confidence in the future, the Government must urgently reconsider these policy changes.”

Family businesses operate in every sector of the economy and the latest research demonstrates the widespread impact of the change to BPR and APR right across the economy. Sectors expected to see the steepest cuts to investment include Accommodation and Food Services (-17%), Construction (-17%), Agriculture and Horticulture (-17%), Manufacturing (-16%), Real Estate activities (-16%), Retail and Wholesale; repair of motor vehicles (-15%).

For those affected by APR, investment is likely to fall most in agriculture and horticulture, with average cuts of around 17%, Accommodation and Food Services (-16%) and Real Estate activities (-16%).

Deborah Walker, Director General of the British Holiday & Home Parks Association said: “The proposed changes to Business Property Relief will mean many much-loved, family-run holiday and residential parks across the UK will have to be broken up and sold off. This is already having a negative impact on investment in many rural and coastal communities. It is vital the Government re-examines the business case for this change and considers the true economic impact it will have.”

John Newcomb, CEO Builders Merchants Federation said: “The building materials sector is absolutely critical to the lifeblood of the UK economy, but changes in Business Property Relief could limit the future of the sector, with many private and family businesses across our membership saying that the impact will damage enterprise.

“Most BMF members are now reviewing their sales and trading forecasts for the next two years and looking at investment decisions, stock levels and staffing numbers.

“We have urged government to ensure the policy does not have the unintended consequence of wiping out what they are aiming to achieve and we call on the PM, Chancellor and Ministers to review the situation and think again about the proposals.”

Steven Mulholland, CEO Construction Plant-hire Association said: “This is the clearest evidence yet of the damage that changes to Business Property Relief will cause to family-run firms – not just in construction, but across every sector of the economy. The numbers speak for themselves: 208,000 jobs lost, £15 billion in lost economic activity, and a nearly £2 billion net fiscal loss for the Government.

“Family-run businesses are the backbone of our economy and communities – they invest locally, create jobs, and drive growth. It is deeply irresponsible for the Government to proceed without a proper impact assessment.

“If the Government is serious about going for growth, it urgently needs to take stock and conduct a thorough consultation on the real-world impact its policies are having and reverse them – before lasting damage is done”

Kate Nicholls, Chief Executive of UKHospitality, said: “Family-owned and run hospitality businesses are incredibly concerned about the proposed changes to inheritance tax, and what it means for them and their families.

 “The family-run nature of these businesses are what make them a key and special part of British hospitality, and there is significant concern that these changes endanger that, with potential costs running into the millions.

“With the findings unveiling that many businesses anticipate reducing or even pausing long-term investments, we urge the Chancellor to rethink these proposals and begin a full consultation with hospitality businesses to properly understand the impact.”

Fran Barnes, CEO Horticultural Trades Association said: “The findings of this report are deeply concerning and mirror the stark reality facing many of our members who are family-run horticultural businesses across the UK. Changes to APR and BPR, alongside other cost pressures, are pushing many towards a cliff edge. The HTA has been calling on the government to pause, consult, and reconsider these policies before long-term damage is inflicted on the sector that underpins Britain’s green economy.”

Gordon Balmer, CEO Petrol Retailers Association said: “PRA is pleased to support the recent study carried out by Family Business UK on the Government’s planned changes to Inheritance Tax from April 2026. Keeping in mind that many of our member’s businesses are family owned, the PRA feels the flaws in the policy reform are clear and threaten thousands of jobs as well as nationwide fiscal gain. PRA has been lobbying for the Government to reconsider the Inheritance Tax reforms as far back as our letter to the Prime Minister on 20 December 2024.”

Sue Robinson, CEO National Franchised Dealers Association said: “NFDA welcomes Family Business UK’s research on the Government’s proposed Inheritance Tax changes to Business Property Relief (BPR) and Agricultural Property Relief (APR). With a number of NFDA member businesses family owned, BPR especially is a pressing issue and NFDA membership was supportive throughout research process. It is crucial that the Government addresses concerns across various sectors that could lead to major fiscal losses, lack of investment and high employee turnover. Recently, NFDA joined other industry bodies in signing a joint letter to the Chancellor, calling for greater transparency around the Government’s proposed changes.”

Tom Bowtell, CEO British Coatings Federation said: “There are a number of family-owned coatings companies across the UK, deeply embedded in their local communities and providing hundreds, if not thousands of jobs, between them. The changes to Business Property Relief are hugely damaging and threatening to their futures. I would urge the Government to look at the evidence collected by FBUK and CBI Economics and reverse this damaging policy before it hurts communities all over the country.”

Download the full report here.