Family Business UK has written to the newly appointed Chancellor of the Exchequer and Secretary of State for Business and Trade, to ensure the priorities of family-owned businesses are embraced within government.
In letters sent to Rachel Reeves and Jonathan Reynolds, FBUK has underlined the significance of family businesses to the UK economy and the importance of retaining Business Relief.
During the election campaign, reports surfaced that Labour could be considering changes to the Inheritance Tax regime and, specifically, Business Relief, which is a vital relief allowing family business owners to plan for the long-terms success of their business.
In the letters, FBUK urges Labour not to rush into making policy decisions that could have unintended consequences: “Scrapping business relief would be catastrophic for every one of the millions of family businesses in the UK, putting investment, jobs and growth at risk.
“The viability and prospects for the family business sector must not be compromised.” The letters go on to ask the new Government to “commit to fully consulting with family businesses, ahead of any changes, to avoid making policy decisions with unintended consequences.”
FBUK has enjoyed excellent working relationships with the previous government ensuring key issues affecting family businesses are considered and consulted on. FBUK has plans to engage with the new Government and has urged the new Chancellor and Business Secretary to embrace similar working relationships.
You can read our letters to Rachel Reeves and Jonathan Reynolds in full here.
Family Business UK would like to congratulate the new Government on its historic election win and extend an invitation to work in partnership to create an environment in which family businesses can prosper.
Following the Labour party’s landslide victory, Neil Davy, CEO of Family Business UK said: “Having campaigned on a platform for growth, we are looking forward to working with Labour in government, on behalf of family businesses across the UK, to ensure the specific needs of family businesses do not get overlooked.
“90% of private sector firms in the UK are family-owned businesses, making up a significant portion of the UK economy.
Family businesses need policies that create stability, and which give them confidence to plan for the long-term, invest in their people, the communities in which they are rooted, and ensure their business can confidently be passed to the next generation.
“How the new Government achieves that and delivers growth for the economy has been the subject of much speculation. But, given the importance of family businesses to the economy it’s clear that if family businesses are allowed to thrive, the economy thrives.
“On behalf of all family businesses across the country, I extend my congratulations to Labour on returning to government and pledge to work with the new Chancellor and Business Secretary to ensure family businesses flourish for generations to come.”
FBUK Warns of Changes to Business Property Relief (BPR)
Family Business UK has responded to reports that Labour is considering changes to Business Property Relief, warning of the potential consequences of scrapping or amending BPR.
Speaking to The Mail about reported changes to the Inheritance Tax regime, FBUK Chair Sir James Wates said: “This puts hundreds of thousands of jobs at risk in a key part of the economy.
“The relief [BPR] allows companies to plan for the long-term. It raises the question of why someone would put themselves through running a business – as you live and breathe it if your name is above the door – if you face crippling tax bills.”
Reported changes
The Mail, and other media outlets have reported in recent weeks that the Shadow Chancellor Rachel Reeves is under pressure from others in Labour to raise Capital Gains Tax (CGT) rates as part of an autumn Budget statement – should Labour form the next government.
These proposals also reportedly include changes to Inheritance Tax including making it more difficult to ‘gift’ money and assets.
Steve Rigby, FBUK Board Director and Co-CEO of Rigby Group added: “Whoever forms the next government must avoid policies with unintended consequences that put our businesses at risk. Family businesses are here for the long term.
“Up and down the country we support the communities and local economies in which we are rooted.
“Successive governments, for almost 50 years, have retained Business Relief, which forms part of the Inheritance Tax regime, knowing that it is key to unlocking the potential for investment, growth and jobs among family businesses.”
The importance of family businesses
Ninety percent of all private firms in the UK are family businesses. That’s 4.8 million companies employing millions of people and contributing more than £200 billion every year in taxes.
Our Manifesto sets out what FBUK wants to see from a new government. We would urge you to download it and share it with your local candidates in the General Election – and again with whoever becomes your local MP.
You can find information about all your local candidates, and how to contact them, at the Electoral Commission.
Back Family Business – Assets
FBUK has also produced a series of infographics to highlight the importance of the family business sector to the UK economy.
You are welcome to download these infographicsto use on social media channels to help us spread the word about the importance of the family business sector.
We just ask that you tag us in any posts, so we can re-share, on LinkedIn and Twitter/X.
The Family Business UK magazine is essential reading for anyone looking for a glimpse into the world of family businesses.
Full of stories about passionate people from fascinating firms, invaluable insights from experts in areas like governance, tax, and succession, and detailed policy analysis from Westminster, our magazine is your chance to stay up to date with issues that matter to you.
Issue two will be available from Monday2nd December 2024.
With the magazine going to a Quarterly publication from March 2025.
We were immensely proud to share our first edition with you earlier this year, featuring articles from family business leaders including:
Alastair Macphie, owner, former MD & Chair, of diversified 3rd gen Scottish food business Macphie, on why succession planning is like writing a will for your business.
Steve Rigby, Co-CEO of 2nd generation family business Rigby Group PLC, on striking a balance between legacy and purpose.
The shared experiences of Jonathan Neame Chair of 13th gen brewers Shepherd Neame and Lizzy Rudd, Chair of 10th gen wine merchants Berry Brothers & Rudd, both businesses founded in 1698.
Andrew Moses, of 1st gen founder-to-family business The Config Team, based in Cumbria & Australia, on feeling like he is on lap one of a business relay race.
Oliver Cummings, 2nd gen CEO of bespoke board search specialist Nurole, on the importance of board diversity.
Get Involved
We are always happy to hear your suggestions and we love it when members get involved.
So, if you’ve got 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 your Brand in the FBUK Magazine
Do you provide genuinely value-adding services to family business? If so, place your brand in front of some of the UK’s premier family business, by advertising in the FBUK magazine.
FBUK delivers record setting Annual Family Business Conference
FBUK were delighted to welcome over 250+ family business leaders, owners, next gens, and their advisors to London between the 5th and 7th June 2024, for our largest ever Family Business Annual Conference –the Faces of Family Business – Harnessing the Power of People
Conference 2024 helped our delegates to harness the power of all the faces of their family business, no matter their age, seniority, role or experiences. From Chair to Next Gen, non-family executive to shareholder, conference truly had something for everyone.
From the lessons learned by James Reed, Chairman and CEO of Reed, on how failing to get up (and down) the Matterhorn led him to change the purpose of the company.
To why Mark Samworth, Chairman of Samworth Brothers puts great value on charitable causes, employee wellbeing and supporting local communities, the FBUK conference provided two days of unrivalled content and learning.
Our workshops and business labs covered some of the most challenging aspects of family business such as how to approach conversations with the senior and next generation, how you reward and recognise people and how to come together during times of change.
As part of our unique offering to family businesses, FBUK were delighted to lead an exclusive Family Business visit to Cumbria, as part of our 2024 Family Business Visits programme.
We were delighted to have the opportunity to meet entrepreneur and co-founder (with wife Barbara) John Dunning, and his daughters, 2nd generation business leaders-Sarah Dunning (Chair) and Jane Lane (Farms director) at the UK’s first family-owned and operated motorway service area, Tebay Services Farmshop & Kitchen.
Tebay – from farm to fork
Members were treated to a fascinating, first-hand retelling of the incredible story of the Dunning families diversification from fell farming into the services sector, with the founding of Tebay Services in 1972, after the M6 motorway was built through the family farm.
Having learned their land was to be compulsory purchased for the creation of a service station, entrepreneurs John and Barbara Dunning took both the risk and forward-looking opportunity to found Tebay services, a motorway stop with a distinct difference from the norm.
Local people, local produce, and strong values, are at the heart of a family business built from farm to fork, and from fields into an expansive, impressive enterprise. With the Westmorland Family growing the business over 52-years, to now own and operate a number of high-quality, service areas across the UK, including in Gloucestershire on the M5 & Scotland on the M74.
Investing In the local community
The family have long been local employers and also philanthropists, raising over £600,000 for charities local to their estates, and latterly supporting Kendal-based organic farm and mental health charity Growing Well which will now expand to a second site, thanks to a unique partnership (and £150,00 contribution) from the Westmorland Family, with additional National Lottery funding.
Growing Well at Tebay Services aims to help 100 people a year in Eden and North Cumbria recover from mental health difficulties by volunteering there one day a week for up to a year.
Under the supervision of experienced therapeutic growers and mental health support staff, volunteers, who can be referred by GPs, other health services, or themselves, can rebuild confidence, learn new skills, benefit from peer support and be helped to achieve their goals, such as returning to employment or education.
Volunteers will work in Growing Well’s new market garden enterprise at Tebay Services, which will supply salads and other leafy vegetables fresh every day to the Tebay Services Farmshop & Kitchen, where they will be cooked and served to customers just a few hundred metres from where they are grown.
Heritage & innovation
Today, the family farm still feeds the business, sitting at its heart, and the families heritage is vital. Change and diversification have come with considerable investment made, to enable the farms own locally-reared livestock to be both uniquely, used and sold in the Tebay farm-shop and master butchers.
Tebay (North and South) are much more than a traditional motorway services however, they have become a genuine destination.
Offering the chance for tired motorists, and Cumbrian locals alike, to:
◆ Eat a good meal in the restaurant, or grab a home-made bite to takeaway;
◆ Visit the artisan Butchery – selling the farms lamb & beef, with a strict policy of no-part’s wasted;
◆ Stay in the Westmorland Hotel, with views over the unique, landscape of Cumbria including conference rooms claiming a fell & waterfall backdrop;
◆ Shop in the expansive Farm shop, stocking food, wines & gifts from over 70+ local producers, most sourced from within 30miles of Tebay, or it’s sister co’s at Gloucester and Cairn Lodge;
Family values baked in
Whilst harnessing a desire, since foundation, to strive for quality and innovation, Tebay also remains a lifeline for the local community who work and trade there.
With the business proud to train their own apprentices annually, including Emily Jackson, the UK’s Apprentice Butcher of the year 2023.
John, and the family business 2nd generation leaders, daughters Chair – Sarah Dunning, and farms director – Jane Lane, inspired us with their own leadership journeys, sharing how they came into the business, plans for the future and allowing us an insight into how the USP has grown the business in-line with their values.
Even at 90 years old, the inspiration and entrepreneurial spark in co-founder John, as told in his book, and in the Channel 4 documentary series “A Lake District farmshop”, is clear to see. With Sarah and Jane championing a wide community of farmers and makers, and nurturing a team of dedicated colleagues who share the family’s commitment to handmade and authentic produce.
Thank you to the family for allowing us such privileged access to a genuinely wonderful location, business, family, and story of truly-lived family values and innovation, triumphing over adversity.
Future Family Business Visits
FBUK run family business visits across the UK, with visits from North Wales to the Midlands, Norfolk to Somerset and Yorkshire in the weeks and months ahead.
In response to an article in The Times titled “Huge fall in apprenticeships under broken levy” regarding the apprenticeship levy, FBUK’s Chief advocacy officer, Fiona Graham, said;
“The latest research from the Chartered Institute of Personnel and Development (CIPD) reinforces our long-standing argument that the apprenticeship system is simply not working”.
“We hear from family businesses on a daily basis how the system is too complicated, inflexible and burdensome”.
“Family businesses want to train young people and upskill their workforces, but administrative complexities discourage businesses from taking on apprentices. Money, a staggering £4.4billion, that could be used for training is instead returned to the Exchequer without being touched”.
“Quite simply, the current system is holding back the immense potential of family businesses by failing to equip future workforces with the skills, training and support they need, where they need it”.
“To deliver a skills regime that is fit for the future, we need an overhaul of the employee training landscape by refocusing the Apprenticeship Levy and making the skills landscape work for businesses and individuals”.
Future Skills Fund
“The current skills and apprenticeship system needs to be revamped and replaced with a more holistic Future Skills Fund. This fund would provide greater flexibility on how money can be used to encompass apprenticeship support, training and development for existing employees.
“This would allow businesses to use the allocated funding on a wider range of training options and opportunities. Transitioning to a Future Skills Fund would also give businesses greater flexibility and opportunity to use funding for the skills and technical expertise they need. It would better equip local schools and colleges to provide training and skills relevant to the needs of local employers and communities”.
The Future Skills Fund would provide a better deal for employers and employees a number of ways:
➤ Providing greater flexibility in the use of the Fund to support life-long learners and apprentices to study, for example through support of transport or living costs.
➤ Removing barriers between the nations of the UK to ensure money can be spent where it is most needed, not necessarily where it is paid.
➤ Giving businesses a greater say in the development of the local skills landscape and supporting career-long skills development and learning, including when re-entering the workforce after a period of absence.”
END.
Family Business UK is a growing body of Family Businesses working together to create a more prosperous and sustainable future for generations to come.
Find out more FBUK today : www.familybusinessuk.org
FBUK are delighted to launch two new family business User Guides containing thought-leadership and best practice to help support the next generation of family business owners, with Guides for the Senior and Next Generation in family business.
These guides form part of FBUK’s growing library of specialisttools and resources, complementing our existing family business Life Stages Model, and helping families navigate the nuances and dynamics of successfully running a multi-generational family business.
The guides cover topics of material importance to family businesses, supporting both the senior generation, and the next generation in family business.
The Senior Gen Guide is designed to help you support your next generation, as they tackle the complexities of finding their way in the family business.
It includes information on:
How to foster the next generation’s interest in the family business;
Supporting them to become the responsible owners of the future;
How to identify those who could lead your business in the future;
Managing the transition to new leadership;
Finding your place and adding value to the business, as you step away.
And the Next Gen Guide can help you as a next generation family member to balance the paths ahead of you, deciding whether to join the business, to take on leadership or ownership, or to build and explore your own career.
It includes information on:
How to decide whether to join the business or not;
How you can equip yourself to take on the responsibilities of ownership;
How to develop as a leader, if that is the path you choose;
At FBUK our purpose is to help create a more sustainable future for generations to come.
And to this end, we apply thought-leadership to support family businesses in capacity building, decision-making, day-to-day management, and family relationships, helping drive sustainable bottom-line performance.
We trust that you enjoy the guides, and would ask you to please share them with family members, colleagues, and others in your network, whom you feel would benefit from their insights.
We are grateful to our carefully selected corporate partner NatWest, for their support with the publication of these guides, and for the thought leadership contributions and case studies they have provided.
