Author: Abbie-Louise

FBUK warns of Threat to Family Businesses

Posted on by Abbie-Louise

FBUK warns of Threat to Family Businesses

Family Business UK (FBUK)  has warned how a vocal minority of commentators risk undermining Britain’s family businesses in the run up the Budget on 30 October.

In a letter to the editor of The Daily Telegraph, FBUK CEO Neil Davy, urges the Government to speak directly to family business owners to understand the importance of supportive policies and how businesses can deliver the Government’s growth agenda.

Below is the full text of the letter.

Ill-informed commentary puts jobs and growth at risk.

Sir, the Government was always going to face difficult choices on tax. But, it must be wary of making policy decisions that penalise businesses based on seemingly unfounded opinion (“Reeves told to charge capital gains tax after death.” 9 September).

Britain’s 4.8 million family-owned businesses are a case in point. Supported by policies that allow them to thrive across generations, they employ half the UKs private sector workforce and contribute more than a quarter of government tax receipts.

Family businesses are well placed to support the Government’s growth agenda. But a vocal minority would have the Government pull the rug from under them, risking a significant loss of jobs in every constituency across the country, lower tax receipts and threatens the future of otherwise successful businesses.

Contrary to the views of a minority of commentators, Business Relief, or Business Property Relief (BPR) is not a loophole that protects the wealthy. Nor is it a policy that benefits the privileged few. It is a policy that underpins the very model of family business ownership, and successful multi-generational businesses.

It has been retained by successive governments for 50 years for the simple reason they understood it gives family business owners the confidence to make long-term investments in their business and the communities they serve.

Many of Britain’s biggest and best-known brands are highly successful multi-generation family businesses. Those who run them have every right to be angry and alarmed by the IFS’ suggestion that future generations are not quite up to the task, or that the ultimate goal of all private businesses – including family businesses – is to sell and cash-in.

On behalf of all family businesses, I urge the Chancellor and her advisers to ignore these voices and speak directly to the owners of the family businesses whose future risks being threatened by ill-informed voices, about how they can – and want to – support delivery of the growth, jobs, and opportunity your government has promised.

Neil Davy
CEO, Family Business UK.

 

Labour’s ambitions for economic growth – rhetoric or reality?

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Labour’s ambitions for economic growth – rhetoric or reality?

The UK’s family businesses range from some Britain’s largest, well-known household brands to the SMEs and local plumbers, electricians, builders, restaurant owners, shopkeepers and mechanics that keep Britain moving.

The 4.8 million family businesses in the UK are the backbone of our economy. They employ 13.9 million people and contribute over £200 billion through tax receipts every year.

These businesses have been around for generations; in many cases one or two generations, but in other cases a dozen generations or more. One of the reasons for the success and longevity of these firms is a long-standing piece of policy that successive governments have committed to retain for decades; Business Property Relief (BPR).

As a policy, BPR is not well known. You don’t hear about it for a simple reason – it works!

It allows the owners of the business to pass it on to the next generation without additional taxes, in the same way that other models of business ownership such as PLCs and private equity-backed businesses are also not subject to. It therefore ensures family businesses can compete on a level playing field.

BPR is also misunderstood. It’s often mistakenly seen as a tax loophole for wealthy individuals. In reality, if BPR were abolished, the additional tax would not be carried by individual owners. It would be a tax on the business.

To pay this tax bill, the business owners would likely need to hold back capital that would otherwise be used to recruit, train, and upskill staff, or money that would be invested in new products and services, or used to expand into new markets. In other cases, business owners would be forced to sell off parts of the business to raise the capital. Many would be forced to sell, or even close the business entirely, at the expense of jobs and livelihoods.

Every year, around 85,000 family businesses are passed to the next generation when the head of the family retires or passes away. If the owners of these businesses are not able to pass ownership on without an additional tax burden (which other businesses are not subject to), not only would the future of those firms and jobs be at risk, but their sale or closure would undermine economic growth in the UK and reduce the tax receipts into the Treasury.

Changing or removing BPR runs counter to fairness and common sense. That’s why successive governments for more than 50 years have supported and protected this legislation that is a lifeline to family businesses, who represent 90% of all private firms in the UK.

Family businesses are well placed to support the Government’s goal of providing stability, creating economic growth and social prosperity. But to be able to do that, the Government needs to commit to retaining Business Property Relief.

Family businesses in the UK need everyone’s backing. Lend your support at:https://project1-4204x58ma2.live-website.com/what-we-do/bpr-campaign/ 

Family Business Week 2024 to Focus on “supporting local economies and communities”

Posted on by Abbie-Louise

Family Business Week 2024 to Focus on “supporting local economies and communities”.

Family Business Week will return this year, from 25th – 29th November, to celebrate family businesses as the cornerstone of local communities up and down the country.

In every corner of the UK, Britain’s 4.8 million family-owned firms are key employers, creating meaningful careers for millions of people, and giving back to the communities they serve.

Now in its fourth year, Family Business Week will this year shine a light on the amazing work of family businesses across the country ensuring the contribution they make to our economy and communities is recognised and celebrated.

With events taking place across the country, the entire week is an opportunity for everyone to get behind family businesses and show their support. Family Business Week builds on our advocacy work to demonstrate to government the importance of family firms and the policies needed to sustain them.

Neil Davy, CEO of Family Business UK said:

“From local tradespeople, retailers, makers and tech innovator to some of our biggest and best-known brands, family businesses thrive in every corner of the country. They create wealth through valuable jobs and long-term careers, and social value by investing in the communities they serve.

In this context, Family Business Week is our chance to tell the world just how important family businesses are in our economy. Why not join us in a week of celebration? Join one of our events, reach out to your network – including your local MP – and help us to spread the word.”

Get Involved in Family Business Week 2024

Whether you’re a family business owner, employee, adviser or a policymaker, get involved and show your support.

  1. Show your support on social media
  2. Nominate a ‘Ones to Watch’ candidate
  3. Attend a Family Business Week event
  4. Invite your MP to visit on #familybusinessfriday
  5. Send your MP our Manifesto and back family business infographic

Family Business Week 2024 is proudly sponsored by our corporate partner, NatWest.

Andy Gray, Managing Director Commercial Mid-Market at NatWest said:

“Family businesses are the backbone of our economy and the bedrock of our communities. They make up 90% of the UK’s total private sector firms and employ 14 million people. At NatWest we see real opportunity to support family businesses to grow, innovate and create jobs over generations, driving the UK economy forward for the long term. We are committed to championing the sector and through our partnership we’re excited to meet and support FBUK members.”

Ones to Watch

Our ‘Ones to Watch’ nominations showcase the best and brightest talent in family businesses across the country – individuals who live and breathe the values of family businesses as the lifeblood of local communities and local economies.

Nominations are now open: Download the nomination form

Do you know a champion of local community? An innovator redefining strategy to support the local economy? Someone spearheading the campaign to make their family business a force for good?

Open to anyone working within the business, affiliated charity, foundation, community outreach programme or similar (they do not need to be a member of FBUK or a family member to qualify).

Why Nominate?

  • Celebrate the incredible work of a person in your business and show your appreciation.
  • Raise their profile, and your company’s.
  • Inspire other family business leaders.

How To Nominate

It couldn’t be easier to nominate someone from your business.

Send us an email with the subject ‘Ones to Watch Nomination’ to info@familybusinessuk.org with the completed nomination form attached.

We will then review and shortlist the nominees, and if the person you have nominated is successful, we will get back in touch with you, so you can share the exciting news!

Our judging panel will be considering several criteria when reviewing nominations, including:

  1. Investing in the local economy and community (nomination statement): What is this person doing to invest in their local economy and act as a force for good in the local community?
  2. Enriching your local area: Are there any initiatives which have been implemented to better the surrounding areas with purpose-led sustainability practices, provision of education, social housing, public resources, or improved high streets
  3. Providing employment: Does this person pioneer for the real living wage, job security, flexible working, training and progression, equality or LTIPs
  4. Supporting local suppliers: How do they support local suppliers? Are they using an innovative or creative approach to balance supply and demand?
  5. Local charitable giving: How do they use social value to tackle inequality?

We look forward to receiving your nomination and celebrating Family Business Week 2024 with you.

Family Business Week 2024 is proudly sponsored by our corporate partner, NatWest.

 

“Scrapping BPR could be catastrophic” FBUK tells Forbes

Posted on by Abbie-Louise

“Scrapping BPR could be catastrophic” FBUK tells Forbes.

Family Business UK has warned of the potential unintended consequences of scrapping Business Property Relief (‘BPR’) on family businesses.

Speaking to Forbes magazine, FBUK CEO Neil Davy said: “capping or scrapping BPR without fully understanding the consequences would be catastrophic for these [family] businesses, the sector, and the wider UK economy.”

Ahead of the Autumn Budget (30 October), the article in Forbes explores possible tax changes that have been mooted for review by the Government, including BPR.

Family Business UK has repeatedly talked about the importance of retaining BPR as part of a supportive policy environment that incentives family businesses to plan and invest for the long term.

A campaign calling on policymakers, MPs and supporters to Back Family Businesses, which was launched by FBUK this summer, asks government to retain BPR and give family-owned firms the support they need to thrive.

Commenting in Forbes, Neil Davy continues: “Business Property Relief is crucial to the long-term outlook and prosperity of family businesses, and the family business sector overall. BPR enables family businesses to be passed to the next generation without the business incurring costs which would otherwise be used to invest in training, job creation, new products and services or expansion into new markets.”

As the Back Family Businesses campaign continues, Family Business UK will keep members up to date with our activity. For regular member updates, and to read our magazine, ensure you sign up, and contact the team with any questions or queries.

Large private companies continue to favour Wates Principles

Posted on by Abbie-Louise

Large private companies continue to favour Wates Principles

Today the Financial Reporting Council published its second assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles.

The research, conducted by the University of Essex, shows that the Wates Principles continue to be the most widely adopted corporate governance code among large private companies.

Of the 1,815 large private companies in scope of the research, 547 (30%) chose to apply the Wates Corporate Governance Principles in 2021/22, with a combined annual turnover totalling more than £850 billion.

Sir James Wates CBE, said:
“I’m once again encouraged to see that more large private companies are choosing to report against the Wates Principles than any other option.”

“The improvement in the reporting quality we’ve seen in today’s report, while good news, shouldn’t distract companies from the need to reduce boilerplate reporting, which remains a primary concern. I urge boards to reflect on today’s report with open minds ahead of their next reporting cycles.”

Mark Babington, FRC’s Executive Director of Regulatory Standards, said:
“The popularity of the Wates Principles continues amongst private companies, who I hope put this report to good use in their efforts to produce meaningful and company specific reports.

“The research highlights the need for increased transparency and accountability among large private companies, particularly as they are a driver of growth in the UK and have a significant impact on the economy and on wider stakeholders.”

While there were some improvements in certain disclosure areas compared to 2019/20, companies continue to struggle with providing meaningful disclosures around key areas. These include defining company purpose, connecting that purpose to strategy, culture and values, and explaining how stakeholder engagement impacts board decision-making.

The report also suggests there is an over-reliance on “boilerplate” disclosures being used rather than disclosures that provide company-specific context. High levels of similarity were found between the corporate governance statements of different companies, and also between reports by the same company in different years.

Click here to download and read the full FRC report and FRC Press Release: “Large private companies continue to favour Wates Principles”.

Listen to the FRC’s “In Conversation” Podcast
The FRC’s latest In Conversation podcast episode features Sir James Wates OBE, Chair of Family Business UK, Kate O’Neill, Director of Stakeholder Engagement & Corporate Affairs, and Maureen Beresford, Acting Director of Corporate Governance and Stewardship at the FRC.

Join the panel as they explore today’s report and discuss the Wates Principles’ flexibility, challenges in meaningful disclosure, and the importance of stakeholder engagement.

Click here to access and listen to the Podcast.

Steering the Family Business Forward: A SaxBam Interview with Neil Davy, CEO of Family Business UK

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Steering the Family Business Forward: A Sax Bam Interview with Neil Davy, CEO of Family Business UK

Family Business UK (FBUK) CEO Neil Davy was delighted, earlier this month to be interview by Kate Ludlow, Managing Partner at Executive Search and Leadership specialists, and FBUK corporate partner,  Saxton Bampfylde.

Neil is the fourth interview in the series ‘Steering the Family Business‘ bringing views from leaders across family business in the UK – family and non-family, executive and non executive. With the intention that the series will encourage shared learning whilst increasing awareness of this vital part of our business fabric.

Neil’ shared his reflections on some of the potential new opportunities and ambitions for family owned businesses, particularly in the context of the lection of a new Government.

Family businesses are integral to UK society and economy and play an enormous role in so many different industries every day. The business model requires leadership that balances entrepreneurship with stewardship, risk-taking with longevity: not an easy combination.

At the very core of that is the focus on the people and a genuine commitment to culture and values, which cannot be underestimated.

Read the interview in full, here.

Saxton Bampfylde recently became a carefully selected corporate partner of FBUK, joining a select and top quality group of advisory partners.

Click here, to find out more about Saxton Bampfylde’s offer to Family Businesses.

 

FBUK Launches Back Family Businesses Campaign

Posted on by Abbie-Louise

FBUK Launches Back Family Businesses Campaign

Family Business UK has launched a new campaign called Back Family Businesses – calling on family business owners, politicians, policymakers, and the public to support family businesses.

The campaign is a calling card for supporters to back family businesses in communities across the country and win new advocates for the sector.

The campaign launched with a focus on Business Property Relief and Gift Holdover Relief – the single most important issues to the family businesses represented by FBUK.

For the first time, a new report Planning for the Long Term sets out a detailed case for retaining BPR and GHR as lifeline policies which, outside of the family business sector are often unknown or misunderstood.

The campaign calls on supporters of family businesses to download and share digital content created for the campaign, and to engage with MPs and policymakers.

Neil Davy, CEO Family Business UK said: “Our campaign is an opportunity for people everywhere – regardless of whether they’re part of the family business sector or not – to back family businesses and share the story of their importance to our economy and society.”

“A change of Government naturally brings uncertainty for family business owners. But, with the right policies in place, family businesses can be the key to unlocking the Government’s growth agenda.”

Labour’s return to government, in an historic election win was built on a manifesto for growth and jobs.

Steve Rigby, Co-CEO at Rigby Group and Director of FBUK added: “The Government’s growth agenda is music to the ears of entrepreneurs, innovators and risk-takers up and down the country.

“With the right policy support, family businesses are well placed to turbo charge growth in every part of the UK delivering the long-term investment and good jobs our country needs.”

In the run up to the General Election, the Family Business UK Manifesto called for a commitment to retain BPR and GHR. In the weeks since the election FBUK has been communicating the same message to MPs, Minister and their advisers.

For media enquiries please contact familybusinessuk@secnewgate.co.uk.

END.

 

FBUK Comments on King’s Speech

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FBUK Comments on King’s Speech

Family Business UK is delighted to see a Bill to reform the skill training announced as part of the King’s Speech, which marks the official opening of Parliament.

The Skills England Bill will see a partnership between government and business, education, training providers and trades unions, creating a new body to oversee skills training.

Reform of skills training is a central recommendation of the Family Business UK Manifesto, Taking the Long-Term View where we call for:

  • Replacing the Apprenticeship Levy with a Future Skills Fund
  • Allowing greater flexibility in how businesses use the fund for skills
  • Removing barriers on spending between home nations
  • Encourage up-skilling and career-long learning

Commenting on the King’s Speech, FBUK CEO Neil Davy said: “We are delighted that the Government has committed to reforming the Apprenticeship Levy through the new Skills England Bill.

“The key to unlocking the true potential of family businesses, and the economy as a whole, is to create a culture of continuous improvement and investment in the skills of young people. The current system just doesn’t work and, reform was one of our key asks of government.

“A new system must give family businesses greater flexibility on how they allocate funding to support apprentices, life-long learners and help people looking to re-enter the workforce. Family businesses employ almost 14 million across the UK, so we are well-placed to support and implement these changes.

“We look forward to working with the Government on the new Growth and Skills Levy, ensuring the necessary reforms can help drive growth across the family business sector and the whole economy.”

The King’s Speech, delivered as part of the State opening of Parliament, contained 40 Bills, 14 of which were wrapped up in a section on economic stability and growth. This included Bills on: Budget Responsibility, National Wealth Fund, Pension Schemes, Planning and Infrastructure, Employment Rights and Audit Reform and Corporate Governance.

A detailed analysis of the King’s Speech from our partners SECNewgate can be found here.