Consultation With The Family Business Sector Needed To Enable Growth

Following the government’s costly partial reversal of its welfare reforms, Family Business United is urging it to abandon plans to change inheritance tax relief for family businesses across the UK and to listen to the voices within the family business community to drive the growth agenda.

A recent survey by the CBI and FBUK revealed that proposed cuts to inheritance tax relief for farmers and family-run businesses could backfire, leading to a significant drop in Treasury revenue. The report estimates the policy could result in over 200,000 job losses during this parliamentary term, a £1.9 billion net loss to the Treasury, and £14.9 billion in lost economic activity.

Paul Andrews, Founder and CEO of Family Business United, comments: "The Government, through the action of the Chancellor, Rachel Reeves, now faces the challenge of funding the government’s U-turn on welfare."

"There is clearly a straightforward solution—stop penalising family farms and family businesses by abandoning the proposals which will then allow family businesses in all sectors to pursue their growth agenda."

"The result would be the sector employing more people, investing in their people and the infrastructure to grow and pay more taxes accordingly, rather than cutting back and looking at ways to fund future inheritance tax liabilities."

“As it stands, the proposed inheritance tax changes won’t raise revenue—they’ll cost £1.9 billion and jeopardise 200,000 jobs. It’s a policy the Chancellor simply cannot afford to pursue and we strongly recommend that consultation with family businesses is pursued to identify ways that will actually result in a growth agenda being developed and delivering positive growth outcomes for the economy."

"Family businesses are the engine room of the national economy contributing significantly in terms of wealth creation, employment provided and income generated, not forgetting their impact on communities the length and breadth of the nation and the significant amounts they already pay in taxes too."

"We urge all family businesses to continue to shout about the consequences of the proposed changes and to contact their local MP so that they are aware of the impact. Furthermore, we are happy to share details of a post on LinkedIn from the newly appointed Alexandra Depledge, MBE, who is the Entrepreneurship Adviser to the Chancellor of the Exchequer," continues Paul.

"In her own words - 'I love taking risks. Usually the bigger the better, but this new role is unprecedented even for me... our community is strong, it has heart and most importantly it offers solutions better than any other I know. So my ask is this..."

"If you have a good idea, a way of unblocking what’s standing in your way of building a fast growing business, or a lens you think I should be looking at entrepreneurship through then let’s hear it. I don’t need to know what’s wrong. I need to understand how to fix it."

You can see the full post here

In the post she provides here email address asking for input via her email - Alex.Depledge@hmtreasury.gov.uk

"So, feel free to email explaining the ways that you feel might help to create a better playing field for family firms and how the removal of APR/BPR would provide the incentive and opportunity for further investment and growth in businesses that care and make such a significant contribution each and every day."

"We have seen a number of U-turns on matters including the Winter Fuel Payments and now with the Welfare Reforms and MPs are rightly expressing concern for some of the changes in their constituencies and it is important to keep the messages and concerns for the family business sector on the agenda."

As Paul concludes:

"We need to continue to amplify the voice of the family business sector to drive for change and encourage consultation to make a difference and enable the focus to be on the future growth and contribution of family firms to the UK economy."