Family Business UK has welcomed a call from a high-profile Parliamentary committee to delay the implementation of changes to BPR and APR to allow government time to consult on the changes.
The Environment Food and Rural Affairs Committee, chaired by Alistair Carmichael, Liberal Democrat MP for Orkney and Shetland, has said it is concerned that no consultation, impact assessment or affordability assessment was conducted before the announcement of changes in the Budget.
The Committee adds that “the lack of proper evaluation of the impact of these changes means that the scale and nature of its impact … comes with a considerable risk of negative unintended consequences.”
Commenting on the report Fiona Graham, Chief Advocacy Officer at Family Business UK said “We welcome this report and congratulate the committee for recognising the damage this policy change will have.
“Business Property Relief and Agricultural Property Relief are fundamental policies that support the family ownership of businesses and farms right across the country. Their impact extends way beyond farming into every sector of the economy.
“We have repeatedly called on Government to consult on these changes and warned Ministers of the unintended consequences of making blanket changes to BPR and APR before hearing from those most affected by them.
“Our research into the impact of the changes to BPR and APR stands as the only robust assessment of just how damaging these changes will be. It shows how business owners are already responding to these changes by cutting investment, activity and jobs, actions which could reduce economic activity by £15 billion and lead to more than 200,000 job losses, resulting in a £1.9 billion tax loss for the Government.
“We call on the Government to accept the recommendations of the EFRA committee in full and commit to a broad consultation with family businesses and farms to find a compromise solution that will prevent the forced sale or break up of good, productive businesses.”
Download our latest research on the impact of changes to BPR and APR.