Tag: family businesses

Family businesses welcome long-term vision but call for stability and action

Posted on by Vanessa Barrett

Responding to the Prime Minister’s speech at Labour Party Conference, Fiona Graham, Chief Operating Officer at Family Business UK, said:

“There has been a strong emphasis on hope and optimism in Liverpool this week, and the Prime Minister’s focus on a long-term vision for the economy is welcome. Family businesses want to share that optimism, but they need stability, certainty and the confidence to plan for the future.

“Making it easier for British businesses to access public procurement and putting greater power in the hands of local leaders could offer real opportunities. Family firms are firmly rooted in the places they serve, creating jobs, investing locally and supporting communities for generations.

“But ambition must now be matched by action. The speech was light on how the Government will tackle the cost of doing business, and attention will now turn to a critical Autumn Budget at the end of the month.

“Family businesses are already dealing with the consequences of changes to Business Property Relief. The Budget is an opportunity for the Government to rebuild confidence and create the conditions family firms need to employ, expand and invest for the long term.

“Family businesses want to work collaboratively with the Government and are ready to play their part in delivering growth. But optimism cannot be built on rhetoric alone. It will depend on the choices the Government makes and the confidence those choices give businesses to invest in the future.”

Rising employment costs put further pressure on family-run wholesale and retail sector

Posted on by Vanessa Barrett

New labour market figures underline the growing pressure facing the UK’s family-run wholesale and retail sector as businesses contend with rising employment costs.

The latest ONS figures show that the wholesale and retail sector had 76,000 fewer payrolled employees in August than a year earlier – the largest fall in employee numbers of any sector. Across the economy as a whole, the number of payrolled employees fell by 145,000 over the same period.

The figures are particularly significant for family businesses, which form the backbone of the UK’s wholesale and retail sector. More than 510,000 family businesses operate in wholesale and retail – representing 91.3% of all firms in the sector.

Together, these businesses employ 2.73 million people, accounting for more than two-thirds (68.4%) of employment across wholesale and retail. Family firms in the sector also generated £974 billion in turnover in 2023 – more than family businesses in any other part of the economy.

The latest employment figures reflect the pressures the family business sector is facing.

Our latest Family Business Pulse found that 38% of family businesses identify rising employment costs as a significant barrier to hiring, while 29% say Employer National Insurance Contributions are among the tax measures having the greatest immediate impact on their business.

Despite these pressures, family firms remain ambitious. More than half (55%) expect to increase their workforce over the next 12 months, although 79% of those expecting to recruit anticipate only a slight increase in staff numbers.

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

“The latest employment figures should concern anyone who wants to see businesses investing, growing and creating jobs across the UK.

“Wholesale and retail is overwhelmingly a family-business sector. More than 500,000 family firms operate within it, employing over 2.7 million people and making a major contribution to communities and local economies across the country.

“Family businesses want to employ more people – our own research shows that 55% expect to grow their workforce over the next year. But rising employment costs are making those ambitions increasingly difficult to realise.

“Ahead of the Budget, Government should focus on creating the conditions that give businesses the confidence to recruit. That means reducing the burden of Employer National Insurance Contributions and carefully managing future increases in the National Minimum and National Living Wage.”

Family Business UK joins prime minister’s first talks with business leaders

Posted on by Vanessa Barrett

Family Business UK has joined Prime Minister Andy Burnham’s first talks with leading business organisations, as the new Government set out plans for a stronger partnership with businesses to drive investment, create jobs and deliver growth across the country.

Neil Davy, Chief Executive of Family Business UK, spoke with the Prime Minister alongside representatives from organisations including the British Chambers of Commerce, Federation of Small Businesses, Institute of Directors, Make UK and ScaleUp Institute.

The Prime Minister used the discussions to outline a new offer to British businesses, focused on greater certainty, clearer long-term direction, faster decision-making and giving businesses a stronger voice in shaping government policy.

A central part of the discussion was the role businesses can play in tackling rising youth unemployment and skills shortages. The Prime Minister called on employers to work with Government to restore the first rung on the career ladder for young people, while helping businesses develop the skilled workforce they need to grow.

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

“It was encouraging to be part of the Prime Minister’s first discussions with business organisations and to hear his commitment to building a stronger partnership between government and business.

“The Prime Minister is right to put tackling youth unemployment at the heart of that partnership. Family businesses invest in people for the long term, providing apprenticeships, training and that crucial first opportunity for young people to get into work and build a career.

“There is significant common ground with our recently published Policy Agenda, from creating a fairer system of taxation to creating those opportunities for young people by breaking down barriers to employment.

“We look forward to working with the Prime Minister and his Government to turn these shared ambitions into practical action and ensure family businesses can continue building Britain for generations.”

FBUK will continue working with the Prime Minister and the new Government to ensure family businesses have a strong voice as these priorities are taken forward.

During the roundtable discussion, Neil informed the Prime Minister and senior government officials that, if the Government wants to drive sustainable growth in every postcode and unlock the full potential of family businesses as partners in creating opportunities for young people, it must reopen the Business Property Relief (BPR) conversation and review the damage these changes are having on family-owned firms.

With family businesses operating in every part of the country, employing locally and investing for the long term, there is a significant opportunity to put them at the heart of the Government’s plans to tackle youth unemployment, unlock investment and deliver sustainable, place-based growth across the UK.