Planning for the Long Term: Policies to support family business

Family Business UK is the leading membership organisation promoting the priorities of family businesses up and down the country. Concerned by the Labour government’s rumoured plans to reform Inheritance Tax and Capital Gains Tax ahead of its first Budget in 14 years, Family Business UK commissioned Henham Strategy to engage its members and use insights to develop a compelling advocacy paper making the case for Business Property Relief (BPR) retention. It was vital we delivered this advocacy paper at pace, with the Labour Government quickly setting out the dire fiscal position it had inherited from previous Conservative governments.

We engaged both large and small family businesses, collating insights around how BPR enables family businesses to plan for the long term, invest in cutting-edge innovations, and support good jobs within communities across the UK. Understanding how BPR would incur significant costs for family businesses, leading to some having to close operations or move overseas, we crafted a compelling narrative that made clear how BPR reform would ultimately run contrary to the Labour government’s growth mission. Backing up this core message, we progressed a robust literature review that drew together powerful economic arguments that further evidenced the centrality of BPR to family businesses’ long-term future. This literature review also contributed to a complementary research piece commissioned by Family Business Research Foundation that aimed to present an impartial view on the debates surrounding BPR.

The advocacy paper produced provided Family Business UK with a robust platform to make the case for BPR retention ahead of the Budget. The compelling narrative was used to influence Ministers, MPs and senior officials, with the topic gaining traction within parliament ahead of the Budget. Alongside providing this platform for Family Business UK, this project provided us with the opportunity to broaden our understanding of tax policy and comprehend further the trade offs Chancellors face when seeking to balance revenue generation with stimulating business confidence and investment.