The resulting impacts for family businesses are likely to include a fall in investment, turnover and headcount
The anticipated impact of changes to BPR on business investment are considerable. 64% of respondents expect their investment levels to decline by more than 20%, while a further 20% predict a reduction of between 10% and 20% . Overall, the average projected decrease in investment due to BPR changes stands at 15.8%. Turnover is also expected to be affected as businesses divert investment to succession planning and liquidity preservation, leading to scaled-back operations. More than one-third of respondents (35%) foresee a reduction in turnover in excess of 20% , with a further 20% of respondents anticipating a moderate decline between 10% and 20% . Taken together, these responses reflect an average expected reduction in turnover of 7.7%. Businesses are also reducing investment in their workforce. 20% of respondents anticipate a significant reduction in headcount of more than 20% , although a further 27% expect a more modest decrease. On average, employment is projected to decline by 10.1% as a direct consequence of the BPR being capped at £1 million.
Figure 3: The expected impact of the changes to BPR on family businesses (% of respondents, main business indicators, N=3,120)
64%
42%
35%
29%
27%
24%
20%
20%
8%
2%
1%
1%
1%
1%
0%
Significantly decrease (more than 20%)
Som e w hat decrease (1 0%t o 20%)
Remain unchanged (+/-1 0%change)
Somewhat increase (1 0%t o 20%)
Significantly increase (more than 20%)
Inv est m e n t
T ur nov er
N u mb er of e mp l o yees
Source: CBI Economics Survey (2025)
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