Tag: advocacy

Family businesses call on Chancellor to cut employment costs and tackle youth unemployment

Posted on by fbuk

Family businesses are calling for action in the Budget to reduce spiralling costs of taking on young workers, with more than a third (38 per cent) saying they have become a significant barrier to recruitment.

In its submission to the Treasury ahead of the Budget, Family Business UK (FBUK) sets out a package of measures to encourage businesses to recruit, invest and grow, including a reduction in employer National Insurance Contributions (NICs) for younger workers, targeted incentives to help young people into work and reforms to the tax system to support long-term business ownership.

The call comes as youth unemployment stands at 16.2 per cent and around one million young people are not in education, employment or training (NEET). FBUK warns that rising employment costs, limited job opportunities, skills shortages and the growing impact of artificial intelligence are making it harder for young people to secure their first foothold in the labour market.

FBUK is now calling for a six-month employer NICs holiday for family businesses recruiting people aged 18 to 24, or up to 30 for those entering their first job. The organisation estimates that the measure could support around 100,000 recruits.

Neil Davy, chief executive of Family Business UK, said: “Family businesses want to invest, grow and create good, long-term jobs. But rising employment costs are making it harder for firms to take on staff, just when the country needs businesses to create more opportunities for young people.

“We need a practical package that makes it easier for employers to recruit and gives young people a better chance of getting into work. Cutting the cost of employing young people, supporting paid work experience and apprenticeships, and extending help to those at risk of unemployment would make a real difference.

“Family businesses account for 93 per cent of private sector firms in the UK and employ 15.8 million people. If we help these businesses create more opportunities for young people, the impact on employment and communities across the country could be transformational.”

FBUK’s proposals to address youth unemployment include:

  • Employer NICs relief: a six-month NICs holiday for family businesses taking on young people aged 18 to 24, or first-time employees up to the age of 30.
  • Paid internships: a six-month Family Business Internship Incentive, with grants of £3,000 to £5,000 for businesses offering structured placements to 18- to 30-year-olds, including training, mentoring and a named supervisor. A further payment could be made where placements lead to permanent jobs or apprenticeships.
  • An expanded Youth Guarantee: extending support to school and college leavers, young people at risk of unemployment and those outside the Universal Credit system, with a focus on careers advice, employability and job matching.
  • More apprenticeship support: extending starter-wage assistance to labour-intensive and socially important sectors, including retail, hospitality, leisure, education and care.
  • A more responsive Growth and Skills Levy: improving guidance on how funds can be used and making it easier for businesses to transfer funding through their supply chains and local business networks.

FBUK is also calling for a more predictable approach to minimum wage policy. It wants the Government to assess the employment consequences of planned alignment between the National Minimum Wage for younger workers and the National Living Wage, and publish a youth-employment impact assessment before each further step towards equalisation. It also proposes a fixed three-year cycle for reviewing employment wage policy, giving employers greater certainty when planning recruitment and investment.

Alongside employment, the submission calls for Chancellor John Healey to use the Budget to reverse his predecessor’s controversial changes to inheritance tax for family firms. It calls on the Treasury to restore 100 per cent Business Property Relief (BPR) with no upper threshold, introduced by Labour Chancellor Denis Healy in 1976, reversing the changes that FBUK says continue to undermine investment, recruitment and succession planning among family-owned businesses.

Although the Government increased the threshold for inheritance tax to apply to family firms’ assets from £1 million to £2.5 million following a fierce backlash, FBUK says the changes have not resolved the fundamental problem. A survey of more than 530 family-business leaders by FBUK found that 58 per cent expected to be affected by the reforms, 24 per cent had paused or cancelled planned investment, and 23 per cent had reduced headcount or paused recruitment.

FBUK argues that family businesses should not face a tax burden on transferring ownership that puts them at a disadvantage compared to publicly listed, private equity-backed and overseas businesses. It warns that money diverted from productive investment to meet inheritance tax liabilities could otherwise support jobs, training, innovation and growth.

The submission also calls for business energy costs to be reduced, by extending to businesses the approach recently taken for households, under which 75 per cent of the costs of obligations to use renewable energy are shifted from energy bills to general taxation. Three in ten family firms identify energy costs or volatility as their main barrier to growth, with retail, hospitality and leisure businesses particularly exposed.

FBUK is further urging the Government to undertake wholesale reform of business rates, moving towards a more progressive system in which different portions of a bill are charged at different rates. Its research finds that 43 per cent of family-owned businesses identify business rates as the tax having the greatest impact on their operations.

Other recommendations include ruling out a one-off or annual wealth tax, providing greater certainty over the tax system, improving access to scale-up finance and introducing incentives to encourage long-term investment in UK private businesses. FBUK also proposes a Community Investment Tax Relief to encourage family businesses to invest in local assets, infrastructure and community initiatives, with an initial targeted pilot potentially focused on youth employment.

Neil Davy added: “Family businesses are long-term investors in the UK economy. They create jobs, support local supply chains and sustain communities, often across generations. But they need a tax and regulatory environment that gives them the confidence to keep investing in Britain.

“Restoring Business Property Relief in full, reducing employment and energy costs, and reforming business rates would help unlock that investment. The Budget should be an opportunity to back the businesses that already contribute £422 billion in tax each year and generate £985 billion in economic value, helping them create jobs and deliver growth across the country.”

 

FAMILY first approach in new FBUK policy agenda

Posted on by Martin Greig

FBUK has published a new policy agenda for family businesses. Coming ahead of local elections around the UK and ongoing geopolitical uncertainty, Building Britain for Generations highlights key areas for policymakers, prioritising stability, long-term growth, investment and stewardship – all traits of family businesses.

The policy agenda calls for government, politicians and all policymakers to adopt a ‘FAMILY first’ approach that encompasses:

  • Fair taxation system
  • Accessing finance and business support
  • Mid-sized family business focus
  • Investing in local communities
  • Lowering the cost of doing business
  • Younger generation focus
FBUK Policy Agenda - Building Britain for Generations

The policy agenda, which was launched at an event in London, proposes a comprehensive set of recommendations that place the UK’s five million family businesses, and the benefits of family ownership, at the heart of efforts to grow the economy and tackle critical issues including youth unemployment.

Policy asks include:

  • Appointing a family business czar in every devolved nation and region to support long-term investment in communities and support greater fiscal devolution,
  • Targeted measures to tackle youth unemployment including an exemption from employer NICs for all family businesses offering Level 4 and above apprenticeships in AI, leadership and management,
  • A clear ‘tax roadmap’ – that gives family businesses confidence about the direction of travel, removes the fear of sudden, damaging surprises and enables long-term investments,
  • Full reinstatement of 100% Inheritance Tax reliefs (BPR and APR) for family firms, with no thresholds,
  • A simplified procurement system that places greater weight on long-term investment and delivery, regional investment and social cohesion.

The new policy agenda also calls on government to adopt a new definition of medium-sized businesses to support the forgotten engine of the UK economy. This should be companies with revenues between £10million-£100million and between 50-499 employees (mid-size is currently defined as fewer than 250 employees and less than £54million revenue).

FBUK research shows there are 10,000 mid-sized family businesses in the UK which employ 1.5 million people and create £140 billion economic output. But these established businesses remain largely invisible to policymakers and are held back by a policy environment designed for either small or large companies.

Neil Davy, CEO Family Business UK said:

“Family businesses are established pillars of Britain’s towns and cities in a way that global brands can never be – they have built a brand, reputation and workforce there, and often it’s the family name above the door.

“Yet the current policy system often favours foreign investment over established, British family businesses with the lure of lucrative tax breaks and other incentives not available to family firms. That has to change if the UK is serious about a robust domestic economy that delivers sustainable, long-term growth.”

The new family business policy agenda, which is launched on the eve of the most significant change to the taxation of British family businesses in 50 years (BPR and APR), also highlights the ongoing impact of the change to inheritance tax reliefs on family businesses:

  • The majority of family businesses (57%) say they will still be materially affected by IHT (despite changes announced by government on 23 Dec),
  • Just 1 in 10 family businesses believe they will escape the tax entirely,
  • Just 74% of family businesses are confident they can remain family-owned in 10 years’ time (down from 91% in the next 3 years) with increasing concerns that the burden of IHT will force businesses to sell up or sell assets – often to foreign-owned corporations – creating further instability for the domestic economy.

But FBUK’s research also shows the positive impact that fully reinstating BPR and APR could have, with almost half (48%) of Britain’s large family businesses saying they would reverse hiring decisions and actively recruit more staff.

Neil Davy continues:

“Recent, sudden policy shifts have forced Britain’s family businesses to pause and recalculate long-terms plans for the future. Some have reduced jobs, other have cut investment and, for the first time, some are asking whether keeping the business in the family is still viable.

“This is a consequence of a choice made by the Government-whether it intended to or not. This policy agenda sets out how it can make a different one. The asks are not complicated, nor are they concessions to a special interest. They are simply the conditions under which a critical part of the British economy will be allowed to thrive.”

Majority of family businesses still hit by IHT change

Posted on by Martin Greig

Majority of family businesses still affected by new rules on inheritance tax despite changes to the policy

Investment and jobs continue to be cut in response to the new tax

Only 74% of firms confident they will remain family-owned in 10 years

The majority (57%) of family businesses say they will still be affected by changes to inheritance tax according to a new survey commissioned by Family Business UK. The findings, which come one month before the policy change takes effect, show that just one in ten family business owners believe they will not be affected at all by the changes to inheritance tax.

The study, which polled 559 owners and senior decision makers in family businesses located across the UK, in all sectors of the economy, shows that changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) will still have a material impact on Britain’s family-owned businesses.

More than half of family businesses (55%) taking part in the survey, with 10-49 employees, say they will continue to be affected by inheritance tax. That proportion increases to almost two-thirds (64%) for businesses with 100-249 employees. Businesses in manufacturing (64%); the IT and telecoms sector (54%); and the retail, catering and leisure sector (52%) will be most affected.

Amendments to BPR and APR were announced just before Christmas increasing the level at which family businesses must start paying inheritance tax from £1 million to £2.5 million. Married couples will also be able to transfer unused allowances effectively allowing them a total of £5 million. Two fifths of family businesses taking part in the latest FBUK survey (42%) describe these amendments as positive but almost one in three (31%) say it will have no impact on them.

FBUK is calling on government to act urgently on the following:

  1. pause the introduction of the policy to allow for a full, independent review of the policy, and publish a full impact assessment leading to,
  2. full reversal of the policy – reinstating 100% Business Property and Agricultural Property Relief, with no upper thresholds, to support the family business sector and unlock investment in jobs, skills and economic growth.

Neil Davy, CEO FBUK said:

“Next month, for the first time in a generation, family business owners will have to pay inheritance tax based on the value of their business and business assets. Since the change was first announced in October 2024, we have seen significant numbers of family businesses cut investment and jobs. Many owners have also told me that they are openly questioning the long-term future of their business. For a government committed to growing the economy this can’t be the outcome it envisaged.

“At a time when the UK desperately needs the economy to grow, this is the wrong policy at the wrong time. We are ready to work constructively with government to achieve a positive outcome that prevents further investment and jobs being lost.”

Matthew Ayres, 4th generation Managing Director of Bennie Group said:

“The new inheritance tax rules force family businesses like ours to gamble on the future. Instead of focusing our energy on innovation, growth and serving our customers, we are being pushed into a defensive position. A position where we spend time and resources on complex tax planning that many other types of businesses never have to consider. It is an unnecessary distraction that pulls leadership attention away from investing, hiring and building for tomorrow.

“Family businesses succeed when we look outward; at markets, opportunities, and long‑term value creation. This policy turns us inward, encouraging risk‑averse behaviour and short‑term protectionism. It is completely out of line with the UK’s need for a clear economic growth strategy. If government wants businesses to invest with confidence, it cannot keep introducing policies that create uncertainty, drive up costs, increase risk, and divert efforts away from productivity and innovation.”

According to the latest research from FBUK, more than 70% of family businesses taking part in the survey have already taken steps to mitigate the impact of changes to inheritance tax. Of those taking steps:

  • 27% said they have paused or cancelled investment,
  • 23% have reduced headcount or paused recruitment,
  • 20% have intentionally held back the growth of the business,
  • 21% have cut or reduced charitable donations.

(respondents were asked to select all options that apply)

The majority of family businesses (77%) say they also plan to take further steps over the next three years. Of those planning to take further action:

  • 26% plan to take out insurance to cover the cost of inheritance tax,
  • 23% will further reduce headcount or pause recruitment,
  • 20% plan to reduce investment,
  • 10% said they plan to close the business and liquidate assets, and a further 10% plan to sell their business entirely.

According to the study just 74% of family businesses surveyed say they are confident they will remain family owned in ten years’ time, down from 91% in the next three years. Owners cite various reasons for their drop in confidence but highlight increasing costs and regulation, a weak economic outlook and, given the changes to inheritance tax, difficulty in finding family members willing to take on the business.

Lizzy Rudd, Chair of Berry Bros. & Rudd, Britain’s oldest fine wine and spirits merchant said;

“As a 327-year-old family business, we have always strived to be stewards for future generations. As a B Corp we also place great value on employing people, considering the wider community and the environment in all that we do. How are we expected to continue to build value for the long term when our children will one day have to pay inheritance tax on this value – a value which is on paper and not in our pockets unless business assets or the business itself is sold?

“Changes to inheritance tax are a very real threat to the future success of the business. In addition to the higher costs of operating right now, these changes are an additional burden for family businesses at the very time the Government should be encouraging us to invest. This tax will drive behaviour that I don’t believe the Government really want, neither does it really understand the principles on which we operate.”

James Reed, Chairman and Chief executive of recruitment giant Reed, one of Britain’s biggest family businesses, said:

“Family businesses are the backbone of our economy and generally excellent employers, so there is a good reason that for decades it has been possible to pass them safely from generation to generation.

“The changes to the way they are taxed coming into effect in April put all that at risk. Great British companies will be broken up and sold off to foreign owners and private equity.

“Ultimately, this isn’t good business because we know that once job losses and reduced economic activity are taken into account, this change will actually mean the exchequer collecting less money overall.

“My concern is that this will end up being a lose-lose for everyone, which is why Labour Chancellor Denis Healey introduced business property relief in the first place.”

Research was conducted for FBUK by Censuswide, among a sample of 559 owners and senior decision makers in family businesses. The data was collected between 16th January 2026 and 2nd February 2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. Censuswide adheres to the MRS Code of Conduct and ESOMAR principles.

FBUK meets Scottish policymakers

Posted on by Martin Greig

With elections on the horizon, one message is coming through loud and clear:

politicians want to hear from family businesses – and they are ready to listen.

Matt Jaffa, FBUK Policy Director

Following our visit to meet Welsh politicians at the Senedd in January, Family Business UK’s policy and public affairs team has continued engagement across the Nations & Regions with a productive trip to Edinburgh.

The Scottish Parliament elections on 7 May are expected to bring significant political shifts. With the economy ranking as the top concern for Scottish voters, the voice of business – and particularly family business – has never been more important.

Our visit to the Scottish Capital began with a roundtable hosted by the Business Growth Fund and led by the Scale Up Institute. Senior advisers from the Treasury joined us to discuss growth, investment, and the tax policies needed to support thriving businesses.

We were particularly pleased to have FBUK Member Ross McAlpine join us for this session to share his perspective on the impact of Business Property Relief (BPR) on investment, growth and tax receipts.

FBUK Member Ross McAlpine joins Matt Jaffa and Tom Ridgway meeting Sue Webber MSP and Dr Sandesh Gulhane MSP

While Scotland holds various tax raising powers, BPR and APR remain UK-wide tax policies administered from Westminster. This made the roundtable and our subsequent discussions an important opportunity to inform MSPs and their teams about the realities facing family firms.

Following this session, we joined four Members of the Scottish Parliament to explore key FBUK priorities. When we sat down with those Members, one thing became abundantly clear: politicians want to hear directly from family business owners. Hearing Ross share his lived experience had a powerful impact – so much so that MSPs immediately arranged a follow-up constituency visit to his business.

Ross McAlpine and Matt Jaffa meet Miles Briggs MSP

At FBUK, we will always champion our members in the corridors of power. But the most influential voice is yours – the voice of real family business experience. So, our call to action for members across Scotland, Wales, Northern Ireland, and England is simple:

Speak up and make sure your voice is heard.

How you can get involved:

  1. Join us for political meetings and roundtables (in-person and virtual),
  2. Take part in policymaking sessions with civil servants, such as our recent meeting with officials from the Treasury,
  3. If you’re visiting London let us know – we’ll contact your local MP and try our level best to arrange a meeting in Westminster,
  4. Tell us if you’d like support arranging a constituency visit – just as we facilitated a mayoral visit for a member this week.

Policy Summit

Ahead of that, join us at our inaugural policy summit: Building Britain for Generations, taking place in London on the 31st March which will provide a unique opportunity for FBUK Members to engage with policymakers, industry leaders, and key stakeholders on the pressing issues shaping family business thinking.

FBUK welcomes Lords report on IHT

Posted on by Martin Greig

FBUK Policy Director Matt Jaffa examines a key House of Lords report into inheritance tax reforms and finds that it echoes 15 months of warnings from Family Business UK

The House of Lords has published its report into the inheritance tax changes announced in the Autumn Budget 2024 – including changes to BPR and APR.

The  109‑page inquiry report: Inheritance tax measures: unused pension funds and agricultural and business property reliefs, and its conclusions echo many of the arguments FBUK has made over the last 15 months. Having given written and oral evidence to the inquiry, FBUK receives 12 name check references in the report.

In short: the Lords agree with what FBUK and our Members have said:

  • the policy is ill-considered,
  • lacked prior consultation
  • risks damaging the UK’s family business sector.

Commenting on the report, FBUK CEO Neil Davy said:

We welcome this report and urge the Government to immediately implement all its recommendations on BPR and APR. The damning criticism of the Government’s processes in formulating these policies highlight serious shortcomings which can only be properly addressed with a full consultation with family businesses and reversal of this damaging policy.

The fact the Lords acknowledge that these deficiencies result from the Government’s failure to properly consult with us and family businesses across the country before announcing the measures, shows precisely why and how the Government got this wrong.

Whilst we welcome the Government listening to arguments we have put forwards and the subsequent amendments it has made to these policies, they do not go far enough to protect thousands of jobs and hundreds of millions of pounds worth of investment delivered by British family businesses.

This is now the third high-profile committee in Parliament to reach a conclusion that this policy is deeply damaging to the family business sector which employs more than 15 million people and makes a significant contribution to the economic success of the country.

The Government must heed these warnings and reverse these policies, before they are implemented in April, to give Britain’s family businesses back their confidence to invest for the future and deliver the growth that remains this Government’s number one priority.

Some key takeaways from the report:

Unrealistic Deadlines

The report is clear: forcing estates to make their first Inheritance Tax payment within six months, including tax on unused pension funds, simply isn’t workable. The Committee recommends extending the deadline to 12 months.

The Committee found that Personal Representatives (PRs) and Pension Scheme Administrators (PSAs) lack the full information needed to calculate IHT accurately. Its message to Government is not to prioritise an April 2027 start date over getting the policy and the processes right.

BPR & APR: Government failed to assess the impact of the policy on family businesses

The Committee questions why the Government did not carry out a full impact assessment before announcing the policy change – a concern FBUK has raised repeatedly.

The Committee recommends cross departmental research (to include the Department for Business, Department for the Environment, Food and Rural Affairs and HMRC) to fully understand the consequences of the reforms.

The report calls for Government to measure the impact of the reforms over the next seven years. FBUK believe that seven years is too long a period of time, which for many family businesses with older owners, is not practical.

Impact of a death on company valuations.

In his oral evidence to the Committee, Steve Rigby, Chair of FBUK, warned of the devastating effect the sudden death of a key individual can have on the valuation of a business. The Committee has now taken this on board and is calling on the Government to examine this issue.

Valuations system not fit for purpose

FBUK highlighted that valuations can vary wildly between assessors, creating delays and financial risk for families trying to meet IHT deadlines.

The report urges the Government to assess levels of staffing and expertise within HMRC’s valuation teams before April 2026, given the expected surge in administrative workload.

This report is the third major Parliamentary committee, alongside the Environment Committee and the Welsh Affairs Committee, to question the Government’s approach to these policy changes.

As the Finance Bill makes its way through Parliament to pass the legislation, this report will give Members of Parliament extra ammunition to press the Government for further changes to the policy.

What happens next?

FBUK will be analysing the full detail of the report and briefing the Government in the coming days, but our position remains unchanged: we continue to call for a full reversal of the policy.

At the bare minimum, a comprehensive review is now essential to design a fairer, more workable system that protects jobs, growth and the long term resilience of the UK’s family business sector. And we will continue to put the voice of Members to Ministers and Parliamentarians as the Finance Bill continue its journey through the legislative process.

FBUK welcomes U-turn on audit reform

Posted on by Martin Greig

The Government has dropped plans to bring forward a Bill on Audit and Corporate Governance Reform.

This is both an important and extremely welcome step in a long, drawn out process which began following the collapse of Carillion in 2018. Since then, FBUK has long argued against proposals that would have placed an enormous burden on large private and family businesses.

After years of anticipation and debate, ministers have concluded that the proposed expansion of the Public Interest Equity (PIE) regime – a far more onerous reporting and compliance framework – would have imposed substantial financial and administrative burdens on business without commensurate benefits.

Why this matters to family businesses

For many large UK family firms – for generations the backbone of regional economies and employment – the threat of being classified as part of the PIE regime carried serious implications – triggering heightened reporting requirements and regulatory oversight which, in practice, favours scale over substance.

This change of direction means leaders can instead focus on meaningful disclosures that genuinely serve investors, employees and customers, rather than box-ticking exercises.

Fiona Graham, Chief Advocacy Officer at Family Business UK, said: 

This move recognises that good corporate reporting should be about clarity and usefulness, not complexity and volume. When stakeholders are overwhelmed with data that obscures rather than informs decision-making, transparency is undermined.

For years, we have worked with policymakers to ensure audit reforms strike the right balance between accountability and proportionality. This move shows that the clear, evidence-based arguments we have consistently presented have laid the ground for this U-turn.

We welcome the government’s renewed focus on proportionate reporting that supports growth and without the cost and complexity that risked holding businesses back.

A better regulatory focus

In making its announcement, the Government has signalled a clear pivot towards simplifying corporate reporting and reducing red tape, rather than pressing ahead with overly burdensome legislation. The Department for Business and Trade says the move will support growth and cut unnecessary costs for large enterprises – a message fully aligned with business concerns across the UK.

At a time when companies face rising economic challenges, the threat of additional compliance costs tied to unnecessary reporting and compliance would have acted as a disincentive to growth, particularly for businesses approaching the proposed threshold. Pulling back on this aspect of the Bill ensures that UK companies remain competitive both domestically and internationally.

Finance Bill second reading: what you need to know

Posted on by Martin Greig

On Tuesday afternoon (16 December 2025), MPs in the House of Commons will debate and vote on the second reading of the Finance Bill – an important moment in the Bill’s journey through Parliament.

The second reading is the first substantive opportunity for MPs to debate the Bill as a whole and to decide whether it should proceed to the next stages of Parliamentary scrutiny. If a majority of MPs vote in favour, the Bill will move on to further stages where individual clauses can be examined and amended in greater detail.

Why this matters to family businesses

The Finance Bill gives legal effect to the Chancellor’s Autumn Budget proposals and contains a number of tax measures that will influence business planning in the years ahead. For family-owned businesses, changes to Inheritance Tax (IHT) and Business Property Relief (BPR) are the most significant.

What the second reading debate covers

At second reading, MPs will debate the overall principles and purpose of the Finance Bill, rather than individual measures or technical details. A treasury minister will open the debate, followed by speeches from opposition parties and backbench MPs. Crucially:

  • No amendments to the Bill can be made at second reading, so the vote is simply on whether the Bill should continue its passage through Parliament.
  • If the Bill passes, detailed examination and opportunities to propose changes will come at the committee and report stages in the New Year.

What happens next if the Bill passes?

Assuming a majority of MPs support the Bill at second reading:

  • It will enter the committee stage, where MPs can scrutinise individual clauses and propose amendments.
  • Following committee stage, the report stage offers further opportunities for changes to the Bill.
  • Finally, the Bill will return for a third reading before moving to the House of Lords.

The House of Commons rises for Christmas recess on 19 December so, any detailed scrutiny of the Bill will come in the New Year.

At the end of the second reading debate on Tuesday, the Government will set out the full timetable for the remaining stages of the Finance Bill, including key dates when crucial IHT legislation can be amended.

Is another rebellion on the cards?

In short no, not at this stage. Earlier in the month, Labour suffered a sizeable rebellion on Resolution 50 of the Finance Bill – the bit of legislation relating to the Government’s changes to IHT. We are seeing Labour MPs concerned about changes to IHT are increasingly speaking out – read FBUK’s analysis here.

Bills rarely fall at Second Reading, and so another rebellion on Tuesday is highly unlikely. However, MPs will have the opportunity to debate the broad principles of the Bill, including the government’s changes to BPR.

Write to your local MP

For family businesses concerned about the impact of new IHT rules, this means lobbying and engagement now is crucial to influencing the next stages.

This is your opportunity to write to your MP ahead of the debate on Tuesday. Download FBUK’s Finance Bill briefing for MPs here.

Find out who your local MP is here.

Family Business UK response to Spring Budget 2024

Posted on by Abbie-Louise

Fiona Graham, Chief Advocacy Officer at Family Business UK responding to the Spring Budget said:

“With challenges facing them on multiple fronts, the family business community has been waiting on tenterhooks about what support the Chancellor would offer to help kickstart the economy.

“While there were incremental improvements on full expensing and VAT thresholds, sadly today’s announcement lacked the strong long-term vision for family firms to help them grow and provide more opportunities within the communities in which they operate.  With the recent  appointment of a new SME Council by the Government, we hope to see continued engagement with the family business community and more policies  for long term support in due course.

“On pensions the Chancellor mentioned moving ahead with the Mansion House Reforms.

“In the election year it’s essential that some of existing reforms around defined benefit pension scheme surplus sharing and consolidation keep moving ahead, and don’t come to a halt because of the election.”

Read the 2024 FBUK Budget submission

You can find the full Spring Budget, and accompanying documents, here.

Beyond the Headlines

There were updates to existing policies within the accompanying documents which will be of interest to many family firms, including:

  • Further details on six Investment Zones in Greater Manchester, Liverpool City Region, North East of England, South Yorkshire, West Midlands and Tees.  Find out more here.
  • Levelling up funding and UK Community Renewal Fund updates.  Find out more here.
  • The Government’s response to changes around Agricultural Property Relief (APR) where land is being put to environmental uses.  FBUK has engaged with HM Treasury and HMRC on this issue, and the need to update legislation to ensure family landowners are not penalised for tackling part in environmental schemes, as promoted by other parts of Government policy.  You can find the response to the consultation here. 
  • The Chancellor also announced the Government’s intention to regulate the provision of Environmental, Social and Governance (ESG) rating providers.  More information here.
  • HM Treasury and DLUHC published their response to a consultation on Business Rates Avoidance and Evasion

Summary of Announcements

Tax

  • 2p cut to employee National Insurance, from ten percent to eight percent.
  • Self-employed National Insurance will be cut from eight percent to six percent.
  • The non-domiciled tax status will be scrapped and replaced with a residency-based system from April 2025, raising £2.7bn in tax revenue a year by 2028/29.
  • Fuel duty 5p cut will be maintained for a further 12 months.
  • Alcohol duty freeze extended until 1 February 2025.  Abolish the furnished holiday lettings regime.
  • Abolish stamp duty relief on the purchase of multiple dwellings in one transaction.
  • Reduce the higher 28 percent rate of Capital Gains Tax on property to 24 percent.
  • Fuel duty 5p cut will be maintained for a further 12 months.  

Business

  • Planned legislation for full expensing to apply to leased assets.
  • From April 1, increasing the VAT registration threshold from £85,000 to £90,000.
  • £200m of funding to extend the Recovery Loan Scheme as it transitions to the Growth Guarantee Scheme.
  • New powers for The Pensions Regulator and the Financial Conduct Authority to ensure better value from defined contribution (DC) pension schemes.
  • Introducing new requirements for DC and local government pension funds to disclose publicly their level of international and UK equity investment.
  • Introduce the British ISA with an additional £5000 tax free allowance for investments in UK equity.
  • £270m for advanced manufacturing, to be spent on innovative automotive and aerospace R&D projects.
  • Up to £120m more will be allocated to the Green Industries Growth Accelerator to build supply chains for new technology such as offshore wind and carbon capture.
  • Extend the energy profit levy, the “Windfall Tax”, to 2029 to raise an additional £1.5bn.
  • Abolish the energy profit levy if the energy market price falls back to a historic norm for a sustained period.

END.