Family Business UK has called on the Government to pause the proposed changes to BPR and APR and warned against any further business-targeted tax increases that will undermine investment and stifle growth.
In its Budget submission, FBUK has repeated its appeal for the Government to consult on the changes to inheritance tax for family businesses and find a route forward that reduces the impact on family and farming businesses.
Research published by FBUK this year shows the changes to BPR and APR could lead to more than 208,000 job losses during the term of this Parliament, reduce economic activity by almost £15 billion and government tax receipts by £1.9 billion.
Against this backdrop, FBUK says:
It is untenable to contemplate further business-targeted tax rises. A broad wealth tax, or new restrictions on dividend taxation that penalise owner-managers, would have a similar effect. Business wealth is not an untapped source of government revenue; it is the working capital of firms. Taxing it aggressively forces asset sales, undermines investment and destroys the very businesses that generate jobs and taxes.
Elsewhere FBUK’s budget submission calls on the Government to:
- commit to a strategy to support mid-sized firms in unlocking long-term, sustainable growth across the whole of the UK.
- put family firms at the heart of the devolution mission, working in partnership with them to deliver local investment and growth
- work with FBUK to deliver tailored advice and support to family businesses, to help them take advantage of new export opportunities and drive growth.
- ensure export support and finance is better targeted to support family firms take their first steps into export
- reintroduce VAT free shopping for international visitors
- take the macroeconomic family business situation into account when assessing the Low Pay Commission’s advice on the NLW and NMW rates to come into effect in April 2026.
Fiona Graham, Chief Operating Officer at FBUK said:
We are absolutely clear that any further business-targeted tax increases in this Budget, will only serve to undermine investment and stifle growth.
Changes to the rules on inheritance tax for family businesses, announced last year, have been hugely damaging to our members and the entire family business community. But there is still time to pause and consult, and for government to work with us to find a better solution that supports Britain’s family businesses.
We would encourage the Government to use next month’s Budget to prioritise growth-friendly policies that support family businesses to do what they do best – create growth and prosperity in every region of the UK and maximise new opportunities in markets around the world.
Read FBUKs full budget submission.
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