Month: March 2026

FAMILY first approach in new FBUK policy agenda

Posted on by Martin Greig

FBUK has published a new policy agenda for family businesses. Coming ahead of local elections around the UK and ongoing geopolitical uncertainty, Building Britain for Generations highlights key areas for policymakers, prioritising stability, long-term growth, investment and stewardship – all traits of family businesses.

The policy agenda calls for government, politicians and all policymakers to adopt a ‘FAMILY first’ approach that encompasses:

  • Fair taxation system
  • Accessing finance and business support
  • Mid-sized family business focus
  • Investing in local communities
  • Lowering the cost of doing business
  • Younger generation focus
FBUK Policy Agenda - Building Britain for Generations

The policy agenda, which was launched at an event in London, proposes a comprehensive set of recommendations that place the UK’s five million family businesses, and the benefits of family ownership, at the heart of efforts to grow the economy and tackle critical issues including youth unemployment.

Policy asks include:

  • Appointing a family business czar in every devolved nation and region to support long-term investment in communities and support greater fiscal devolution,
  • Targeted measures to tackle youth unemployment including an exemption from employer NICs for all family businesses offering Level 4 and above apprenticeships in AI, leadership and management,
  • A clear ‘tax roadmap’ – that gives family businesses confidence about the direction of travel, removes the fear of sudden, damaging surprises and enables long-term investments,
  • Full reinstatement of 100% Inheritance Tax reliefs (BPR and APR) for family firms, with no thresholds,
  • A simplified procurement system that places greater weight on long-term investment and delivery, regional investment and social cohesion.

The new policy agenda also calls on government to adopt a new definition of medium-sized businesses to support the forgotten engine of the UK economy. This should be companies with revenues between £10million-£100million and between 50-499 employees (mid-size is currently defined as fewer than 250 employees and less than £54million revenue).

FBUK research shows there are 10,000 mid-sized family businesses in the UK which employ 1.5 million people and create £140 billion economic output. But these established businesses remain largely invisible to policymakers and are held back by a policy environment designed for either small or large companies.

Neil Davy, CEO Family Business UK said:

“Family businesses are established pillars of Britain’s towns and cities in a way that global brands can never be – they have built a brand, reputation and workforce there, and often it’s the family name above the door.

“Yet the current policy system often favours foreign investment over established, British family businesses with the lure of lucrative tax breaks and other incentives not available to family firms. That has to change if the UK is serious about a robust domestic economy that delivers sustainable, long-term growth.”

The new family business policy agenda, which is launched on the eve of the most significant change to the taxation of British family businesses in 50 years (BPR and APR), also highlights the ongoing impact of the change to inheritance tax reliefs on family businesses:

  • The majority of family businesses (57%) say they will still be materially affected by IHT (despite changes announced by government on 23 Dec),
  • Just 1 in 10 family businesses believe they will escape the tax entirely,
  • Just 74% of family businesses are confident they can remain family-owned in 10 years’ time (down from 91% in the next 3 years) with increasing concerns that the burden of IHT will force businesses to sell up or sell assets – often to foreign-owned corporations – creating further instability for the domestic economy.

But FBUK’s research also shows the positive impact that fully reinstating BPR and APR could have, with almost half (48%) of Britain’s large family businesses saying they would reverse hiring decisions and actively recruit more staff.

Neil Davy continues:

“Recent, sudden policy shifts have forced Britain’s family businesses to pause and recalculate long-terms plans for the future. Some have reduced jobs, other have cut investment and, for the first time, some are asking whether keeping the business in the family is still viable.

“This is a consequence of a choice made by the Government-whether it intended to or not. This policy agenda sets out how it can make a different one. The asks are not complicated, nor are they concessions to a special interest. They are simply the conditions under which a critical part of the British economy will be allowed to thrive.”

Initiative to boost youth employment & apprenticeships a positive step

Posted on by Martin Greig

FBUK has welcomed a package of measures aimed at creating 200,000 jobs for young people – addressing the increasing numbers who are not in employment, education or training.

The announcement, which is backed by £1billion of extra funding is aimed at reversing the trend of young people neither earning nor learning, and to transform apprenticeships. Almost one million young people aged between 16-24 are classified as not in employment, education or training according to the latest data. Of these, more than half are classed as economically inactive (not looking for work).

Measures announced by the Government include:

  • Youth Jobs Grant: Businesses will receive a hiring incentive worth £3,000 for each young person they employ aged 18-24 who has been on Universal Credit and looking for work for six months.
  • Apprenticeship incentives: £2,000 for small and medium-sized enterprises (SMEs) in England when they take on new apprentices aged under 25.
  • Expanding the Jobs Guarantee: to 22–24-year-olds, meaning all eligible 18–24-year-olds across Great Britain will benefit from a fully funded six month guaranteed paid employment opportunity.
  • Further reforms to the Growth and Skills Levy to prioritise young apprentices

New research from Family Business UK shows the importance of flexible, lifelong skills training to family businesses:

  • A quarter (26%) of family businesses view labour and skills shortages as the main barrier to growth.
  • A third of (34%) family businesses feel that more flexible training options for upskilling existing staff would better meet the needs of their family business.

Responding to the announcement, Neil Davy, Chief Executive Officer, FBUK, said:

“A shortage of skilled workers is a key barrier to growth for more than a quarter of family businesses and a third believe that more flexible training options are needed to help build a future-ready workforce. So, we welcome today’s announcement of an additional £3,000 incentive for family businesses that take on 18–24‑year‑olds who have been on Universal Credit for more than six months.

“We also back the move to make short, bite‑sized training courses accessible through the new Growth and Skills Levy. Family firms have often struggled to utilise funding through the previous Apprenticeship Levy, and this change is one we have been calling for.

“It is essential the apprenticeship system remains flexible enough for family businesses to support the next generation of the workforce – including those who may become future leaders. We are keen to work with the Government on the implementation of these initiatives to ensure the needs of all family businesses – and workers – are met.”

Latest FBUK magazine published

Posted on by Martin Greig

The latest edition of the Family Business UK magazine – and the first of 2026 – is hot off the press.

Full stories about passionate people from fascinating firms, invaluable insights from family business experts, detailed policy analysis from Westminster and news from FBUK Members and Corporate Partners, our magazine is your chance to stay up to date with issues that matter to you.

You can read or download a pdf copy by clicking below.

FBUK Magazine Edition 6 March 2026

In this latest edition:

  • B Corp is all about embedding purpose and values into everyday operations. Many family businesses have already become certified B Corp. In this edition, you can read about Haymarket’s journey to gaining B Corp certification,
  • with changes to inheritance tax due to come into effect in April, there are top tips on how to prepare,
  • as those changes to inheritance tax take effect, FBUK COO Fiona Graham gives her view on why it’s critical for family businesses to make their case to be heard at the heart of policymaking and,
  • as FBUK gears up to mark our 25th anniversary at our Annual Conference in June we talk to the two founders of FBUK Alex Scott and Grant Gordon about the power of the Family Business UK community.

We are always keen to hear your news or about issues that matter to you. If you have some news to share or there’s something you’d like us to cover, why not get in touch?

And, if you’d like to advertise your business, brand or services in our magazine, download our media pack to learn more about the opportunity.

Majority of family businesses still hit by IHT change

Posted on by Martin Greig

Majority of family businesses still affected by new rules on inheritance tax despite changes to the policy

Investment and jobs continue to be cut in response to the new tax

Only 74% of firms confident they will remain family-owned in 10 years

The majority (57%) of family businesses say they will still be affected by changes to inheritance tax according to a new survey commissioned by Family Business UK. The findings, which come one month before the policy change takes effect, show that just one in ten family business owners believe they will not be affected at all by the changes to inheritance tax.

The study, which polled 559 owners and senior decision makers in family businesses located across the UK, in all sectors of the economy, shows that changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) will still have a material impact on Britain’s family-owned businesses.

More than half of family businesses (55%) taking part in the survey, with 10-49 employees, say they will continue to be affected by inheritance tax. That proportion increases to almost two-thirds (64%) for businesses with 100-249 employees. Businesses in manufacturing (64%); the IT and telecoms sector (54%); and the retail, catering and leisure sector (52%) will be most affected.

Amendments to BPR and APR were announced just before Christmas increasing the level at which family businesses must start paying inheritance tax from £1 million to £2.5 million. Married couples will also be able to transfer unused allowances effectively allowing them a total of £5 million. Two fifths of family businesses taking part in the latest FBUK survey (42%) describe these amendments as positive but almost one in three (31%) say it will have no impact on them.

FBUK is calling on government to act urgently on the following:

  1. pause the introduction of the policy to allow for a full, independent review of the policy, and publish a full impact assessment leading to,
  2. full reversal of the policy – reinstating 100% Business Property and Agricultural Property Relief, with no upper thresholds, to support the family business sector and unlock investment in jobs, skills and economic growth.

Neil Davy, CEO FBUK said:

“Next month, for the first time in a generation, family business owners will have to pay inheritance tax based on the value of their business and business assets. Since the change was first announced in October 2024, we have seen significant numbers of family businesses cut investment and jobs. Many owners have also told me that they are openly questioning the long-term future of their business. For a government committed to growing the economy this can’t be the outcome it envisaged.

“At a time when the UK desperately needs the economy to grow, this is the wrong policy at the wrong time. We are ready to work constructively with government to achieve a positive outcome that prevents further investment and jobs being lost.”

Matthew Ayres, 4th generation Managing Director of Bennie Group said:

“The new inheritance tax rules force family businesses like ours to gamble on the future. Instead of focusing our energy on innovation, growth and serving our customers, we are being pushed into a defensive position. A position where we spend time and resources on complex tax planning that many other types of businesses never have to consider. It is an unnecessary distraction that pulls leadership attention away from investing, hiring and building for tomorrow.

“Family businesses succeed when we look outward; at markets, opportunities, and long‑term value creation. This policy turns us inward, encouraging risk‑averse behaviour and short‑term protectionism. It is completely out of line with the UK’s need for a clear economic growth strategy. If government wants businesses to invest with confidence, it cannot keep introducing policies that create uncertainty, drive up costs, increase risk, and divert efforts away from productivity and innovation.”

According to the latest research from FBUK, more than 70% of family businesses taking part in the survey have already taken steps to mitigate the impact of changes to inheritance tax. Of those taking steps:

  • 27% said they have paused or cancelled investment,
  • 23% have reduced headcount or paused recruitment,
  • 20% have intentionally held back the growth of the business,
  • 21% have cut or reduced charitable donations.

(respondents were asked to select all options that apply)

The majority of family businesses (77%) say they also plan to take further steps over the next three years. Of those planning to take further action:

  • 26% plan to take out insurance to cover the cost of inheritance tax,
  • 23% will further reduce headcount or pause recruitment,
  • 20% plan to reduce investment,
  • 10% said they plan to close the business and liquidate assets, and a further 10% plan to sell their business entirely.

According to the study just 74% of family businesses surveyed say they are confident they will remain family owned in ten years’ time, down from 91% in the next three years. Owners cite various reasons for their drop in confidence but highlight increasing costs and regulation, a weak economic outlook and, given the changes to inheritance tax, difficulty in finding family members willing to take on the business.

Lizzy Rudd, Chair of Berry Bros. & Rudd, Britain’s oldest fine wine and spirits merchant said;

“As a 327-year-old family business, we have always strived to be stewards for future generations. As a B Corp we also place great value on employing people, considering the wider community and the environment in all that we do. How are we expected to continue to build value for the long term when our children will one day have to pay inheritance tax on this value – a value which is on paper and not in our pockets unless business assets or the business itself is sold?

“Changes to inheritance tax are a very real threat to the future success of the business. In addition to the higher costs of operating right now, these changes are an additional burden for family businesses at the very time the Government should be encouraging us to invest. This tax will drive behaviour that I don’t believe the Government really want, neither does it really understand the principles on which we operate.”

James Reed, Chairman and Chief executive of recruitment giant Reed, one of Britain’s biggest family businesses, said:

“Family businesses are the backbone of our economy and generally excellent employers, so there is a good reason that for decades it has been possible to pass them safely from generation to generation.

“The changes to the way they are taxed coming into effect in April put all that at risk. Great British companies will be broken up and sold off to foreign owners and private equity.

“Ultimately, this isn’t good business because we know that once job losses and reduced economic activity are taken into account, this change will actually mean the exchequer collecting less money overall.

“My concern is that this will end up being a lose-lose for everyone, which is why Labour Chancellor Denis Healey introduced business property relief in the first place.”

Research was conducted for FBUK by Censuswide, among a sample of 559 owners and senior decision makers in family businesses. The data was collected between 16th January 2026 and 2nd February 2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. Censuswide adheres to the MRS Code of Conduct and ESOMAR principles.

Government must incentivise business to create growth

Posted on by Martin Greig

The Chancellor of the Exchequer has announced the Spring forecast in Parliament. Commenting on the statement, FBUK Chief Operating Officer Fiona Graham said:

“Stability and certainty are critical to all businesses and the economy. Today’s statement—and the Government’s commitment to move to one major fiscal event a year—should be welcomed for aiming to create that environment.

“With the return of conflict in the Middle East and increasing geopolitical instability, higher taxes, weak growth and unemployment forecast to move higher this year, stability and certainty must not mean inaction. Major structural issues including persistent and rising levels of unemployment among young people and low rates of productivity must be addressed if the Government is to truly unlock growth.

“For family businesses, there was nothing much to cheer in today’s statement. With changes to inheritance tax due to come into effect next month, the OBR repeated the high degree of uncertainty in how businesses will respond to the tax. Our evidence continues to indicate that it will further reduce employment, weaken investment and productivity growth, and lead to a fiscal loss to the Treasury.

“If the Government is serious about reversing these trends and raising our standard of living through economic growth, it must look at how it can properly incentivise businesses to create investment and opportunities in every part of the country.”