Tag: Family Business

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.

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 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.

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.

S&W Becomes Silver FBUK Partner

Posted on by Martin Greig

Family Business UK and the accountancy and advisory firm S&W have agreed a new silver-level Corporate Partnership.

Founded in 1881, S&W is a top 10 UK accountancy firm, supporting more than 23,000 clients from their 17 offices across the country.

Neil Davy, CEO FBUK said

“I am delighted to welcome S&W to Family Business UK adding their knowledge, expertise and counsel to our own, and supporting our Members in building Britain for generations.

“Our Corporate Partners are critical allies in our work. Together, we can better support our Members to navigate the challenges they face today and build strong, innovative family businesses for tomorrow.”

As a silver-level Partner of FBUK, S&W will help deliver thought leadership and meaningful content and guidance to the family business community.

Laura Hayward, Partner S&W added

“We are thrilled to join Family Businesses UK as a new Corporate Partner, joining a movement of businesses and supporters advocating for family businesses and their positive impact in the UK.

“S&W’s partners and professionals are devoted to supporting family businesses through every stage of their journey helping them navigate challenges, unlock potential and achieve the extraordinary.

“We look forward to championing these remarkable businesses that drive innovation, generate employment, and stimulate economic growth across the UK.”

FBUK Magazine Edition 3 Published

Posted on by Martin Greig

Hot off the press, the latest edition of the Family Business UK magazine has been published and is available to download digitally.

Coming at a pivotal moment for family businesses, with important policy changes creating an uncertain outlook, this edition explores some of the key issues you should consider when planning for the journey ahead.

Download the FBUK Magazine

In this edition you’ll find:

  • Steve Rigby – the Chair of FBUK on his ‘North Star’ for FBUK,
  • Views from Westminster including:
    • Gareth Thomas MP the Minister for Services, Small Businesses and Exports,
    • Andrew Griffith MP the Shadow Secretary of State for Business and Trade,
    • Daisy Cooper MP the Deputy Leader of the Liberal Democrats and the Party’s Treasury Spokesperson,
  • William Lees-Jones – Managing Director of JW Lees on campaigning against the changes to BPR,
  • Sarah Dean – Chair of Noble Foods on leading with purpose and the importance of staying true to your values,
  • FBUK Corporate Partners Farrer & Co, Clarion and PwC give their tips on what you need to do to plan for the changes to BPR and APR.
  • We mark 500 years of family business history with FBUK Members Neville Trust (150 years) and Morning Foods (350 years),
  • Caroline Platt shares her lessons from conquering daring adventure challenges and
  • Holly Thallon Steenson on her journey into the family business.

All this, and you can read about our latest research looking at the impacts of the changes to BPR and APR.

Get Involved

If you’ve got news to share, an issue you think we should be covering or perhaps you fancy writing an article yourself, reach out and get in touch with a member of the team.

Advertise in the FBUK Magazine

Would you like to advertise your business and services to some of the UK’s premier family business owners? You can find more information below about securing space in future editions of the magazine. And, if you’d like to talk to us about other advertising, sponsorship and partnership opportunities, we would love to hear from you. You can contact a member of the team here.

Download our media pack

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.