Author: Vanessa Barrett

Major New Report Warns IHT Reforms Could Undermine Family Business Growth

Posted on by Vanessa Barrett

“This research adds to a growing body of evidence showing that changes to Business Property Relief are having real-world consequences for family-owned businesses and the wider economy.”

“Family Business UK has consistently warned that these reforms risk undermining the very businesses that drive long-term investment, create skilled jobs and sustain local economies. It is particularly concerning to see so many family-owned manufacturers reporting that succession plans are being disrupted and that investment decisions are being delayed as a result.”

“Manufacturing is a sector built on long-term thinking. Family-owned manufacturers invest across generations, not electoral cycles, and their contribution to Britain’s economic resilience, industrial capability and regional prosperity cannot be easily replaced.”

“The finding that some business owners are considering selling, including to overseas buyers, should give policymakers pause for thought. At a time when the Government is rightly focused on economic growth, reindustrialisation and strengthening UK supply chains, we should be creating the conditions for family businesses to invest and pass ownership successfully to the next generation, not making that transition harder.”

“We urge Ministers to listen carefully to the concerns being raised by manufacturers and review the proposed reforms to Business Property Relief before more damage is done. Family businesses want to invest, grow and contribute to the UK’s future success. Government policy should support those ambitions, not stand in their way.”

Chancellor’s Growth Push Must Put Family Businesses at the Heart of the Agenda

Posted on by Vanessa Barrett

“The Chancellor is right to put economic growth at the heart of the Government’s agenda. The challenge now is to turn ambition into action and, with the Autumn Budget approaching, the test will be whether Government policies genuinely encourage businesses to invest, expand and create jobs.”

“In our recent engagement with the Prime Minister and Business Secretary, we have made clear that one of the most effective ways to unlock growth is to back Britain’s five million family businesses. Together, they employ almost 16 million people and are embedded in communities across every part of the country.”

“The Budget should provide the certainty and confidence that family businesses need to invest for the long term. That means creating a stable environment for growth and rethinking policies that are already having the opposite effect.”

“The recent changes to Business Property Relief are a clear example. Family businesses are telling us that these reforms are disrupting succession planning and causing investment decisions to be delayed or scaled back. Capital that could be used to improve productivity, expand operations and support jobs is instead being reserved to meet future tax liabilities.”

“Family businesses stand ready to play their full part in delivering growth. The Government must now create the conditions that enable them to do exactly that.”

Renewed confidence offers a chance to unlock family business growth

Posted on by Vanessa Barrett

The latest Family Business Pulse shows renewed optimism across the family business community, with growing confidence in the economy and plans to create jobs.

Almost two-thirds (63%) of family businesses now expect the UK economy to grow over the next 12 months, up from 48% three months ago. Confidence in businesses’ own prospects has also risen from 84% to 87%.

This renewed optimism – a possible “Burnham Bounce” following the recent change in political leadership – has lifted the overall Family Business Pulse score from 60 to 63 out of 100.

There are encouraging signs for employment too. More than half of family businesses (55%) expect to increase their workforce over the coming year, up from 41% in the previous quarter.

However, most are planning only modest expansions. Businesses continue to face barriers including rising employment costs, high-wage expectations, skills shortages and uncertainty about future demand.

Investment is still being held back

Despite stronger confidence, the impact of changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) continues to grow.

More than half of family businesses (58%) now report being negatively affected by the BPR changes, rising to 65% among medium-sized firms. Almost a quarter (24%) have paused or cancelled investment projects over the past year, up from 15% in the previous quarter.

For family businesses, uncertainty over succession can directly affect decisions about recruitment, premises, and long-term investment.

Looking ahead, inheritance tax reform and business rates reform were jointly identified as the policy changes most likely to support growth, followed closely by a reduction in Employer National Insurance Contributions.

The findings provide a clear message ahead of the Autumn Budget: family businesses are ready to invest and create jobs, but they need a stable and supportive policy environment.

Restoring full BPR and APR would help convert renewed confidence into investment, employment and sustainable growth across the UK.

Explore the findings and read the full Family Business Pulse report.

Treasury to call time on uncertainty for pubs and hotels

Posted on by Vanessa Barrett

The Government has announced an independent review into how pubs and hotels are valued for business rates, a move welcomed by Family Business UK as a positive step towards creating a fairer system for businesses operating in these sectors.

‘We welcome this review as a positive step forward for pubs and hotels, many of which are family-owned businesses rooted in their communities and were not fully supported by previous changes to the business rates system.

However, while targeted support for sectors facing particular pressures is welcome, the wider business rates system still needs fundamental reform. Family-run, bricks-and-mortar businesses continue to shoulder a disproportionate burden, meaning that the very businesses that invest for the long term in our high streets and communities, are often penalised.

As we set out in our Policy Agenda, family businesses want to see a fairer and more progressive approach to business rates that better reflects businesses’ ability to pay and reduces the disproportionate burden on physical premises.

We look forward to working with the Government through this review and its wider reforms to create a fairer business rates system that encourages growth and investment and supports family businesses to continue investing in the places and communities they call home.’ – Fiona Graham, Chief Operating Officer at Family Business UK.

Handelsbanken becomes latest FBUK Corporate Partner

Posted on by Vanessa Barrett

Handelsbanken becomes latest FBUK Corporate Partner

Family Business UK (FBUK) is delighted to announce that local relationship bank Handelsbanken has become the latest organisation to join their Corporate Partnership programme.

Handelsbanken has been operating in the UK since the 1980s and today supports local businesses and individuals, right across the country, with their banking and wealth management requirements.

Established in Stockholm in 1871, it is one of the country’s leading banks with a nationwide branch network. The Bank’s home markets are Sweden, Norway, the Netherlands, and the UK. It also has operations in Luxembourg and the USA.

Handelsbanken is known for its strong emphasis on customer satisfaction, its financial strength and stability, and its relationship banking ethos. With a network of branches from Truro to Inverness, the bank’s fully-decentralised model means individual colleagues in each branch are empowered to make the vast majority of banking decisions. Customers speak to someone they know personally, and who fully understands their business, its financial needs and the local economy and environment.

FBUK has established partnerships with carefully selected and highly respected organisations that provide compelling professional services to family businesses.

In welcoming Handelsbanken to the FBUK Corporate Partner network, Neil Davy, CEO FBUK said:

“We’re delighted to welcome Handelsbanken to FBUK as part of our growing community of Corporate Partners.

“Handelsbanken are an organisation that places values at the heart of their relationship banking model, priding themselves in putting the interests of their customers front and centre of their operation.

“Their values-led approach makes them an ideal fit to support our Members, whose model of business ownership takes a long-term view to people place and business.”

Chris Teasdale, Chief Branch Officer, Handelsbanken, said:

“We are delighted to be partnering with Family Business UK. Handelsbanken is driven by a strong set of core values, with which FBUK clearly aligns. At Handelsbanken, all our customers do their banking with someone they know, and who takes the time to really understand their business and their long-term financial aspirations. Through our relationship banking model, colleagues are empowered to take decisions that support their customers locally – and we see how this delivers real value for family businesses up and down the country each day.

“We look forward to playing our role in helping to deliver FBUK’s mission of creating a more prosperous and sustainable future for generations to come, and to supporting their members in achieving their own financial ambitions.”

Family businesses witnessing a bounce in UK growth prospects but caution remains over inheritance tax changes

Posted on by Vanessa Barrett

Family businesses across the UK are reporting an uplift in confidence following the change in Prime Minister, with new data in Family Business UK’s ‘Family Business Pulse’ showing growing optimism about the wider UK economy.

The latest quarterly survey of more than 530 family business leaders, conducted during the transition to Prime Minister Andy Burnham, shows a sharp rise in confidence in the UK’s economic prospects. Nearly two-thirds (63%) of family firms are now confident about UK economic growth over the next 12 months, compared with 48% in Q1. The overall net confidence score for the UK economy has increased from +17% to +40%.

Confidence levels were strongest in the North of England, with 70% of family businesses in the North West, North East and Yorkshire expressing confidence in UK economic growth over the coming year, compared with 60% in London and the South East. This optimism coincides with the launch of No.10 North.

Despite the positive outlook, concerns surrounding changes to Business Property Relief (BPR) and Agricultural Property Relief (APR), which came into effect on 6 April, remain a major issue for family businesses.

  • Almost six in ten family firms surveyed (58%) say they are now being affected by the changes, up from 51% in the previous quarter.
  • A third (33%) of family businesses have sought legal or professional advice over the past year.
  • Medium and larger family businesses continue to be the most impacted, with 65% of firms employing between 50 and 249 people reporting that they are affected by the changes.
  • The survey also highlights the impact of BPR/APR on growth plans, with 24% of family businesses having paused or cancelled investment projects over the last 12 months, up from 15% in the previous quarter.

Neil Davy, Chief Executive Officer of Family Business UK, said:

“Family businesses have responded warmly to the change at No.10 and launch of No.10 North and there is a renewed sense of optimism about the UK’s growth prospects. 

“Family businesses are natural partners in the Government’s ambition to grow the economy. However, the changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) mean that many are being forced to withhold capital that would otherwise be earmarked for investment in recruitment, skills, training and community projects, in order to protect against unexpected inheritance tax liabilities. 

“If the Government wants to unlock the full potential of family-owned businesses, it should reopen the conversation on recent changes to BPR and APR and fully assess the negative impact they are having on investment and growth which the economy and communities across the UK need. 

“With the right policy environment, family firms will create jobs, develop skills and provide opportunities for economic growth in every part of the country. In doing so, they can play a key role in helping the Prime Minister deliver on his ambitions.”

Manchester’s Moment: What it Means for Family Businesses

Posted on by Vanessa Barrett

There was a certain symbolism in Family Business UK’s NowGen Community Roundtable taking place in Manchester on Thursday. 

On the same day voters went to the polls to elect the city’s next Mayor, family business leaders gathered in the heart of the city that has become the political and economic focal point of the new Government’s ambitions. Under Prime Minister Andy Burnham, Manchester is no longer simply one of Britain’s great cities. It is now home to No.10 North – the central hub for the Government’s devolution agenda and its ambition to deliver “growth in every postcode”.

That made Manchester the ideal place to discuss what comes next for Britain’s economy.

The city is now recognised as the UK’s fastest-growing major economy. While that success cannot be attributed solely to Andy Burnham’s near decade as Greater Manchester Mayor, there is a widely held view within the business community that his mayoralty demonstrated the value of meaningful engagement between government and business. Employers were seen not simply as stakeholders to consult, but as partners in delivering economic growth.

There are early signs that same approach is being carried into Government.

Within days of entering Downing Street, the Prime Minister invited FBUK to join the first discussions with leading business organisations on growth, investment, skills and jobs. For a sector that contributes so much to the UK’s economy and communities, it was an encouraging indication that family businesses will have a voice as the Government develops its economic agenda.

Our NowGen Community Roundtable, kindly hosted by Collinson Grant, reinforced why that partnership matters.

The discussion brought together family businesses from a wide range of sectors, sizes and generations to meet Bill Esterson MP, who spent eight years as Labour’s Shadow Business Minister before becoming Chair of the Energy Security and Net Zero Committee. As part of the Government’s efforts to rebuild confidence and strengthen its relationship with business, he took time to hear directly from family business leaders about the opportunities and challenges facing firms across the country.

Although every business around the table had its own story, there was one consistent theme.

Family businesses are rooted in the communities they serve. They create local jobs, invest for the long term and build relationships measured in generations rather than electoral cycles. Whether operating in manufacturing, hospitality, professional services or retail, they share a commitment to creating opportunities for local people and strengthening the places they call home.

That is precisely why family businesses are natural partners in delivering both devolution and the Government’s wider growth agenda.

If growth is genuinely to reach every postcode, it will depend on businesses that already have deep roots in the areas they call home. Family firms understand local labour markets, local supply chains and local communities better than almost anyone. They are uniquely placed to help translate national ambition into local economic success.

There was broad agreement that the new Government has made an encouraging start. Recent announcements aimed at tackling youth unemployment, including measures to remove financial barriers that can discourage some young people from taking up apprenticeships, recognise the important role employers play in creating opportunities for the next generation. Family businesses have long been at the forefront of providing apprenticeships, first jobs and long-term careers, making them natural delivery partners for this agenda.

Equally, the discussion highlighted areas where businesses will be looking for the Government to go further.

The decision to extend VAT relief on household energy bills was widely welcomed. However, many questioned why energy-intensive businesses facing the same prolonged period of high energy costs were not afforded similar support. For firms looking to invest, expand and recruit, competitive energy costs remain a vital part of the overall business environment.

Conversations also returned to Business Property Relief. The business community remembers the extensive engagement that took place before the previous Government entered office, only for subsequent reforms to leave many family businesses questioning whether Government fully understood the realities of long-term ownership, succession and investment. That experience inevitably means early optimism is tempered by caution.

Ultimately, confidence will not be judged by the tone of early engagement alone, but by the policy decisions that follow.

The Autumn Budget is likely to be one of the defining moments of the Prime Minister’s first year in office. It presents an opportunity to demonstrate that the Government’s reset with business is more than a change in rhetoric by creating the conditions that encourage businesses to invest, grow and create jobs with confidence.

Family Business UK’s Building Britain for Generations Policy Agenda provides a practical roadmap for doing exactly that. From supporting apprenticeships and employer-led skills, to encouraging investment, strengthening local economies and reducing unnecessary barriers to growth, it offers constructive proposals that align closely with the Government’s ambitions.

There is a genuine opportunity to forge a new partnership between Government and family businesses – one built on trust, stability and a shared commitment to long-term growth. If the Government wants to deliver growth in every postcode, family businesses stand ready to help make that ambition a reality.

Interest Rates held at 3.75%: FBUK calls for stability to support family business growth

Posted on by Vanessa Barrett

Responding to the Bank of England holding interest rates at 3.75%: Matthew Jaffa, FBUK Policy Director, said:

“FBUK welcomes the Bank of England’s decision to hold the base rate at 3.75%. Family businesses are eager to invest, grow and create jobs, but rising cost pressures and ongoing geopolitical uncertainty have slowed the pace of expansion more than many would like.

“A sustained period of controlled inflation and lower interest rates is vital for family firms, whose long-term outlook and investment decisions are central to their success and contribution to the wider economy.”