Tag: BPR

High Court to hear IHT case in March

Posted on by Martin Greig

The High Court has scheduled an urgent two-day hearing at the Royal Courts of Justice on the Government’s changes to inheritance tax for family businesses and family farms.

The hearing is scheduled for the 17-18 March and will be heard by a panel of senior judges in the Divisional Courts.

The Claimants behind the Judicial Review against the changes to BPR and APR believe the Government acted unlawfully by failing to comply with prior promises to consult properly with affected taxpayers, and undertaking only a limited technical consultation in relation to certain narrow aspects of their APR and BPR changes.

Commenting on the announcement, Fiona Graham, COO Family Business UK said:

“Family businesses have known for some time that a High Court hearing on the changes to BPR and APR was imminent. Owners will welcome this clarification that it will now be heard in March.

“The changes to BPR and APR for all family-owned businesses pose a material challenge to their long-term prospects. In the face of that uncertainty, businesses have paused and cancelled investment and jobs as a result of the policy change.

“Family businesses crave certainty—it underpins their long-term approach. We will continue to support our Members and all family businesses to ensure they have the clarity they need to thrive as a multi-generational business.

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.

More Than 160,000 Family Businesses Call on Government to Consult on Inheritance Tax Change.

Posted on by Abbie-Louise

More Than 160,000 Family Businesses Call on Government to Consult on Inheritance Tax Change.

Embargo: 00:00 Monday 16 December 2024

Thirty two Trade Associations, representing more than 160,000 UK family-owned businesses and farms, have written to the Chancellor calling for a full and formal consultation on changes to Inheritance Tax announced in the Budget.

In an open letter, led by Family Business UK, the Trade Associations warn that changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) will starve their members and the economy of investment, lead to forced, premature business sales and result in job losses right across the country.

Independent economic modelling commissioned by Family Business UK and conducted by CBI Economics suggests that far from raising revenue, the changes to BPR alone could result in a £1.25 Billion net fiscal loss to the Exchequer, lead to more than 125,000 job losses and reduce economic activity (GVA) by £9.4 Billion over the course of the Parliament.

The leaders of 32 Trade Associations* who have signed the letter represent family-owned businesses in all areas of the UK economy including builders, bakers, retailers, farmers, manufacturers, mechanics, food producers, funeral directors, pubs, restaurants, garden centres, growers, electricians and recruitment agents.

Neil Davy, CEO Family Business UK said: “The model of family business ownership is unique. It powers the entire economy from farming to finance and everything in between. This letter, and those who have chosen to sign it, are testament to just how widespread family ownership is, and how committed we are to speak up on behalf of our members.

“The changes to Inheritance Tax for family businesses and farms are a hammer blow. In many cases, those inheriting the business will have no alternative but to sell up when the owner dies, rather than continue running the business.

“In these circumstances, there is a real risk that businesses, assets and farms will be sold to foreign-owned competitors or investors who will pay little to no tax in this country.

“Already, family business owners are taking decisions to withhold planned investments and are putting recruitment on hold. Those working for family businesses are also extremely concerned, worried about how these changes might impact them.

“We do not believe that these are the outcomes the Government envisaged. So, we are calling on the Chancellor to meet and run a formal consultation, to find a solution that will protect the long-term interests of family businesses and farms and, crucially the jobs and investment they provide.”

Changes to BPR and APR announced in the Budget will mean that business and farm assets worth more than £1million will now be subject to Inheritance Tax at a rate of 20% when the business owner dies.

Family business owners and farmers will typically retain more than 90% of their personal wealth directly in the business, allocated to fund growth and investment.

To cover the Inheritance Tax liability, business owners will be forced to take money out of the business otherwise allocated to investment, typically via dividends (taxed at 39.5%). Added to IHT, this effectively creates double taxation.

Figures from HMRC suggest that around 500 family farms and 500 family businesses a year would be affected by the change. Analysis by CBI Economics suggests that three times as many family businesses (1,647) will adjust their behaviour each year to mitigate the change to BPR.

According to the CBI Economics, family businesses mitigating the cost of a potential future Inheritance Tax bill would be most likely to reduce investment and employment leading to an:
• average reduction in investment of 16.5%
• average reduction in headcount of 10.2%
• average loss of turnover of 7.4%

Even for family businesses currently below the new £1million threshold for BPR, there is a striking impact on how they behave and plan to mitigate future impacts from Inheritance Tax.

Amongst these businesses:
• 55% expect investment to reduce with a quarter expecting it to fall by more than 20%, producing an average net reduction of investment of 12.2%
• headcount would reduce by 9%
• turnover could fall by 5.8%

There are 4.8 million family businesses in the UK employing almost 14 million people and contributing more than £200 Billion a year in tax revenues.

Download and Read the letter in full here.

END.

FBUK Publishes Economic & Fiscal impact of changes to BPR

Posted on by Abbie-Louise

125,700 Jobs and £9.4billion GVA Threatened by Inheritance Tax Change for Family Businesses.
Analysis Indicates £1.3billion Net Fiscal Loss to Government
Family Businesses Call on Government to Consult on the Changes

FBUK Publishes Economic & Fiscal impact of changes to BPR

Changes to the rules on Inheritance Tax for family-owned businesses could lead to a significant reduction in economic activity and lower tax revenues, as companies plan to cut investment and jobs according to new analysis.

Findings from an independent study by CBI Economics, the CBI’s economic consultancy division, on behalf of Family Business UK (FBUK) indicate that, over the term of this Parliament, the decision to cap Business Property Relief (BPR) at £1million could lead to more than 125,000 jobs losses (125,678) and reduce the value of goods and services produced across the economy (GVA) by £9.4billion.

Taken together, these reductions could mean that capping BPR at £1m could result in a net fiscal loss to the Exchequer of £1.3bn between 2026/27 and 2029/30. This is significantly lower than the £1.4bn gain in revenues estimated by the Office for Budget Responsibility (OBR) over the same period from the policy change to BPR alone.

The analysis by CBI Economics, part of which involved a survey of 234 family businesses, finds that over a fifth of family businesses (27%) with assets valued at over £1m expect to transfer the ownership of their business between 2026/27 and 2029/30 in a way that would incur Inheritance Tax. This is expected to lead to nearly 5,000 businesses making adjustments that have an impact on their activity.

To mitigate the additional tax liability the most common response from family business owners was to downsize, cut investment or reduce headcount.
The analysis indicates an:

  • average reduction in investment of 16.5%
  • average reduction in headcount of 10.2%
  • average loss of turnover of 7.4%

Fifteen percent (15%) of family businesses that expect to incur an Inheritance Tax liability say they will sell the business entirely, 9% say they will draw out extra cash from the business in the form of dividends (incurring additional tax at 39.5%), 6% would sell assets and shares to non-family investors and 4% would close, liquidate or relocate overseas.

The analysis shows that even for companies currently below the new £1million threshold for BPR, there is a striking impact on how they behave and plan to mitigate future impacts from Inheritance Tax.

Amongst these businesses:

  • 55% expect investment to reduce with a quarter expecting it to fall by more than 20%, producing an average net reduction of investment of 12.2%
  • headcount would reduce by 9%
  • turnover could fall by 5.8%

Neil Davy, CEO of Family Business UK said:
“Just as we’ve seen among the farming community in relation to APR, changes to BPR announced in the budget will fundamentally remove incentives among owners of family firms to invest in their businesses, and in many cases threaten their viability.

“The CBI Economics research concludes this will come at the expense of jobs, investment, and tax receipts into the Treasury. Downsizing of businesses, asset disposures, complete sale or liquidation are very real unintended consequences of this policy.

“Given a typical business will employ more people than an average farm, there’s a case to make that capping BPR may be even more damaging to the employment figures and the wider economy than capping APR.

“There’s a fundamental misconception that family business owners are hugely wealthy individuals, with large quantities of liquid assets or cash. Nothing could be further from the truth.

“As with farmers, owners of family businesses typically have more than 90% of their personal wealth directly tied-up in the business, allocated to fund growth and investment. To cover this tax liability, business owners will be forced to take money out of the business otherwise allocated to investment, typically via dividends (taxed at 39.5%). Added to IHT, this effectively creates double taxation.

“A common misconception is that BPR is a personal tax relief. In reality this is a tax on businesses, which no other model of business ownership is subject to.

“Government data, published alongside the Budget, forecasts that changes to Inheritance Tax on family business could raise £520m a year from BPR and APR, by the end of the Parliament. Based on data for 2021-22 the Government estimates that around 550 family businesses will be impacted by the change to BPR each year.

“FBUK believes that these figures significantly underestimate the impact of the change. The CBI Economics data support this, predicting the total number of businesses effected expected to change hands for 2026-2027 to be 1,647. Between 2026-27 and 2029-2030 is figure is 4,941, or 8.3% of all family businesses with assets valued at over £1m (59,814).

“Taking the Government’s own definition of SMEs, far from affecting a small number of those with the broadest shoulders, a cap of £1m will also affect many small and medium sized businesses who the Government are claiming to support. And without indexation, the £1m cap also means that more SMEs will fall within scope over time.”

William Lees-Jones, Managing Director of JW Lees said:

“The proposed changes will be a real blow to companies like JW Lees. It has always been our philosophy to invest our profits back into growing our family company resulting in significant investment and the creation of a large number of jobs.

“For us to have to divert funds into dividends to pay Inheritance Tax would be challenging and would inevitably reduce future investment in the company. It would also place our business at a considerable disadvantage to our competitors who tend to be listed or owned by private equity, sometimes overseas.

“We would urge the government to consult with businesses to look at all the potential unintended consequences of these proposed changes.”

Stuart Paver, Chair of Pavers Shoes added:

“Life was simple before the budget. I received shares from my parents, I held onto them and helped grow the business, reinvesting in the long-term growth of the company and then handed it on. But now I must spend time and money looking at how I can avoid leaving a huge burden to the next generation and the outcome is very unlikely to match the Chancellor’s desire for a growing economy.”

Lizzy Rudd, Chair of Berry Bros & Rudd said:
“We are a 326 year old family business, the oldest fine wine and spirits merchant in the UK and one of the oldest businesses in the UK.

“Throughout our long history we have always reinvested in the business rather than giving profit to shareholders. We pride ourselves in being a business that cares about our colleagues, our communities and our planet, and we follow the B Corp principles, having just applied for certification. This means we invest for the long-term for the benefit of all our stakeholders and have a reputation and heritage that is well known across the world”.

“Having Business Property Relief and being able to pass our shares down to the next generation without incurring Inheritance Tax has meant that we didn’t need to accumulate wealth outside the business, allowing us to continue to invest, providing employment and bringing people together from all over the world to the heart of London to share food, wine and conversation together.

“Inheritance Tax will threaten the future of the business and force us to think short-term to maximise returns to shareholders in order to build wealth outside the business to pay a future tax liability”

ENDS.

About Family Business UK (FBUK)
Family Business UK is the largest organisation dedicated to advocating for, promoting, and championing family businesses. It is movement of some of the most innovative, and best-known family businesses across the country, including a number of household names and global companies.

FBUK works to showcase the role and contribution family businesses make to communities across the country, and our wider economy.

FBUK is a not-for-profit organisation.

About CBI Economics
CBI Economics is the economic consultancy division of the CBI. We offer a suite of independent client services including bespoke economic analysis and business surveys. With unrivalled policy knowledge and business insights combined with economic expertise, we can develop a compelling narrative to help you achieve your desired outcomes – whether that be lobbying policy change, building a case for investment or demonstrating the impacts of your business on the economy, on society and on the environment.

CBI Economics conducted a survey following the changes to Business Property Relief (BPR) announced at the Budget. This survey attracted 234 responses from family businesses. The survey first determined the businesses that would be affected by the changes to BPR between April 2026, when the changes come into force, and April 2030. Affected businesses are those over £1 million in value and who are anticipating a share transfer or change of ownership in the period specified.

Businesses were asked how they expected the changes to affect their investment plans, turnover and headcount.

Primary survey data was integrated with additional secondary data collected from official and third-party sources. These informed the inputs to CBI Economics’ in-house economic and fiscal models, which were used to estimate the total economic impacts in Gross Value Added and Full Time Equivalent jobs, along with net fiscal impacts to the Exchequer. Total economic impact was derived primarily using the anticipated reductions in turnover, with CBIE’s dynamic economic model capturing the further implications this would have for supply chains and employee spending.

Budget Comment – Inheritance Tax Changes – Family Businesses

Posted on by Abbie-Louise

Budget Comment – Inheritance Tax Changes – Family Businesses

Immediate Release.

Neil Davy, Chief Executive Officer of Family Business UK said: “These changes are a betrayal of Britain’s hard working family business owners and farmers that will result in valuable businesses being closed, sold and jobs lost across the country. 

“For all but the very smallest companies the changes to Business Property Relief are much the same as scrapping it entirely. Far from raising money for the Exchequer our research has shown that removing the reliefs will cost money – with a £29billion cut in economic activity and 391,000 jobs lost. 

“On top of changes to Employer’s National Insurance, employment rights, and living wage, this is yet another burden heaped on Britain’s 4.8 million family owned businesses, and removes entirely any incentive for starting or running a family business. 

“Inheritance tax reliefs are not loopholes, they are legitimate tax policies, introduced by a Labour Government in 1976, to ensure that businesses do not have to be broken up on the death of the owner, to the detriment of all the remaining employees, suppliers, customers, investors, the Treasury and wider economy. 

“These changes effectively seize 20% of the capital of private trading companies saddling them with tax bills that, in most circumstances, cannot be met without selling the underlying business.

“Those inheriting a family business simply do not have 20% of the business value lying around in cash. This change will see a steady succession of family business sold or their underlying assets broken up to satisfy these ill-thought out policy changes.” 

ENDS.

Contact the Family Business UK Press Office here.

Removing BPR could cost Billions

Posted on by Abbie-Louise

Removing BPR could cost Billions

New research commissioned by Family Business UK shows that £29billion and 391,000 jobs could be lost from the economy if policies that support family businesses are removed.

The findings come from CBI Economics, which was commissioned by FBUK to model the impact of removing Business Property Relief and Gift Holdover Relief.

Both BPR and GHR have been the subject of intense speculation ahead of the Budget, with reports they could be removed or reformed.

But data from CBI Economics suggests that removing the policies could have serious, long-term economic consequences with:

  • 48% of family firms reducing investment
  • 30% reducing headcount
  • 24% expecting lower turnover
  • 16% suggesting they would be forced to sell-up to pay an Inheritance Tax charge
  • 347,000 micro businesses and sole traders could be forced to close.

Neil Davy, CEO of FBUK said: “This research shows the detrimental impact removing BPR and GHR would have on investment, employment and receipts into the Treasury. It would undermine the economic growth and long-term prosperity the government has committed to deliver, and which family businesses want to support and contribute to.”

The Government’s stance on BPR and GHR has been unclear for months with suggestions that removing BPR could raise money for the Treasury at a time when public finances are stretched. However, our research suggests that removing them could actually cost the Government money.

The modelling shows that over the next 5 years, scrapping BPR and GHR could raise £7.4bn for the Treasury BUT it could result in an £8.4bn decrease in tax revenue caused by the reduction in family business activity and the wider negative impacts on the UK economy”.

Neil Davy continues: “We’ve been highlighting the critical role that BPR plays in providing a stable regulatory environment for family businesses to trade with confidence, operate on a level playing field with other models of business ownership, and continue to invest in people, jobs, skills, R&D and new products and services.

“This new research shows the unintended consequences of removing the policies that support family businesses. Doing so would be a self-defeating move by any government elected on a mandate to deliver long-term economic growth and prosperity.”

Dr Peter White, Managing and Technical Director of Nova Laboratories, a Family Business UK member, added:

“After eighteen years working in the NHS, I started Nova Laboratories from nothing. Thirty years later, the Company has a global reputation, employs 280 local staff, and next year will export 65% of our products and services.

“The financial certainty provided by both spousal relief and Business Property Relief allowed me to re-invest everything back into the Company, rather than accumulate my family’s personal wealth. Over 95% of my family’s paper wealth is therefore in the Company’s shares, and not in personal assets or liquid cash. This approach allowed the Company to grow steadily and sustainably, and my son has spent a decade in the business developing a 20-year plan for its continued growth and success.

“Unless both these reliefs are maintained in full, the incentive to create and grow a successful business, continually re-invest in the business, and provide smooth and stable succession will be completely lost in the UK.”

END.

 

 

Westminister debates family businesses and BPR

Posted on by Abbie-Louise

Westminister debates family businesses and BPR

Family businesses have taken centre stage in Parliament ahead of the Budget, with MPs debating Business Property Relief (BPR) and its essential role supporting family-owned firms across the country.

A Westminster Hall debate led by Harriet Cross, Conservative MP for Gordon and Buchan heard from MPs about how BPR and APR (Agricultural Property Relief) is being used to support businesses and family-owned farms in their constituencies.

The debate, which took place less than two weeks ahead of the Labour’s first budget, gave MPs a chance to raise their serious concerns with Government.

Opening the debate, Harriet Cross MP underlined the important role played by BPR and APR incentivising family businesses up and down the country.

 

Will Forster, Liberal Democrat MP for Woking, told Members about the importance of family businesses to local economies like Woking.

 

Nigel Huddlestone, the Shadow Financial Secretary, said the Government must hear the concerns and fears MPs had expressed on behalf of their constituents about potential changes to inheritance tax relief, including BPR.

Huddleston reminded the House that prior to the election, family businesses believed they had received assurances on BPR from the Labour party and called for those assurances to be reiterated.

Responding for the Government, James Murry, the Exchequer Secretary to the Treasury acknowledge that many Members had raised their uncertainties ahead of the budget, including on BPR.

He acknowledged the ongoing debate and the work of Family Business UK in calling for BPR to be retained.

The Budget will take place on 30 October.

You will be able to read Family Business UK’s response after the Chancellor has delivered the Budget to Parliament.

You can read FBUK’s pre-budget submission here.

Visit our Back Family Businesses campaign page here.

Confidence slips as businesses brace for “significant” tax rises  

Posted on by Abbie-Louise

Confidence slips as businesses brace for “significant” tax rises

Family-owned businesses fear changes could threaten their business

  • More than half (52%) of family businesses rate government’s policies unfavourable
  • Majority (80%) of family businesses say Labour wasn’t honest about tax plans

London: Eighty five per cent of business leaders say they expect the Government to increase business taxes in the Budget with 35% fearing significant tax rises according to research carried out by Censuswide.

Rises in Corporation Tax were identified most often by businesses, despite a pledge in Labour’s manifesto not to increase it.

Others include Business Rates, Capital Gains Tax and Employer’s National Insurance. More than a quarter (26%) of businesses say they feel less confident about the outlook for their business since Labour won the election.

The poll by Censuswide and commissioned by Family Business UK includes several different types of business ownership models, including PLCs, family businesses and private equity-backed firms. It reveals a marked difference in sentiment among Britain’s family business owners compared to other business models

52% of family-owned businesses polled rate the Government’s business policies as unfavourable and four out of five don’t believe the Labour Party was honest with voters about their plans for tax rises in the lead-up to the election.

There has been speculation about whether Labour could scrap Business Property Relief (BPR) in the Budget – a vital policy that underpins family businesses.

67% of family firms say the policy is either important or essential to their business and removing it from the budget could result in them selling assets (31%), being sold completely (20%) or liquidated (20%) to cover additional costs.

Neil Davy, Chief Executive Officer of Family Business UK said:
“The Chancellor used her speech a Labour Conference to repeat a pledge to not increase the rates of Income Tax, National Insurance or VAT. But a running commentary about the budget deficit and the need to increase other taxes, is extremely damaging for business.

“The Chancellor wants growth and Investment. Our members want that too. We hear that businesses are more confident because the Government has brought back stability. But that’s not what our research indicates – particularly for family businesses who are fearful the Government may be about to pull the rug from under them, removing tax policies that underpin their very model of ownership.”

The Need to Retain Business Property Relief

Ongoing uncertainty around whether the new Government will scrap or amend BPR means that family firms are extremely concerned. More than 70% say unfavourable policies will lead to lower profits and almost two thirds (63%) say they will not increase headcount in the next 12-months.

Family businesses are the beating heart of the economy, operating in every corner of the country. Britain’s 4.8 million family businesses support thriving local communities up and down the country, employing 13.9 million people and contributing more than £200 billion in taxes every year.

The model of family business ownership, which can see companies thrive for hundreds of years, is supported by a long-established policy known as Business Property Relief, or Business Relief (‘BPR’). The policy, first introduced in 1976 by the then Labour Government, has been retained by successive governments since and is widely recognised as providing a lifeline and level playing field for family firms to invest over the long term.

Each year, around 85,000 privately owned family businesses change hands when the owner dies or chooses to retire. BPR allows those businesses to continue trading, without interruption, when other family members take on the responsibility for running them. It means that neither they, nor the business is subject to additional taxes, or costs which, in most cases, are borne by the business. Non-family-owned businesses incur no tax penalty when ownership changes.

Neil Davy continues: “Our survey clearly shows the growing pressure family business are under due to uncertainty around potential tax rises and ongoing rumours about scrapping of Business Property Relief at the next election.

“While the Government allows this uncertainty to continue, Britain’s family business feel in limbo and important investment decisions are being put on hold.

“I would urge the Chancellor to ignore the voices of vocal minority who believe that BPR is a loophole for the wealthy, and would see it scrapped, and instead listen to us and our members about how it underpins an entire sector of the economy.

“Business Property Relief is not just a tax policy, it’s a commitment to fairness, opportunity, and the future of British enterprise. We would urge the Government to protect it or risk potentially catastrophic consequences of lost jobs, growth and prosperity in every constituency across the country.”

ENDS.

Notes to Editors

Censuswide conducted a poll of 500 business leaders and senior decision makers across the country between September 5 and September 9, 2024.

About Family Business UK

Family Business UK is the largest organisation dedicated to promoting, championing and advocating for family businesses. It is movement of more than 200 of the largest and best-known family businesses across the country, including a number of household names and global companies. It works to showcase the role family businesses play in creating a more prosperous and sustainable future and highlighting the impact of family-owned businesses.

FBUK is a not-for-profit organisation.