5. CONCLUSION
Changes to BPR and APR are already leading to widespread disruption
This research, which is the most comprehensive undertaken to date on this issue, demonstrates that since the Autumn Budget 2024, family businesses and farms have taken material decisions to mitigate the impacts of the announced changes to BPR and APR. These include plans to restructure their business, delaying or cancelling investment and planning workforce changes, all before the policy changes take effect in April 2026. These decisions will have significant and long-lasting impacts for the businesses themselves, their supply chains, the wider economy, local communities and the livelihoods of working people across the country. There is also reduced appetite or ability for businesses to fund community activities and charitable donations, affecting vital local initiatives and impacting communities across the UK The overall deterioration of the environment for family-owned businesses and farms will have negative repercussions for the wider economy as reduced activity seeps into the supply chain and the workforce has less money to spend. The pressures resulting from the change to BPR and APR are substantial, extending way beyond the jobs and investment of affected businesses. Some are considering selling their family business or farm entirely or looking to sell assets outside the family. Serious impacts could unravel from these changes, with 7% and 6% of respondents considering closing their business or farm in response to BPR and APR changes respectively. This would cause disruption to the model of family ownership which has unique socio-economic benefits.
Impacts will be felt nationwide, but may be distributed unevenly across regional economies
Local-level data underscores the extent to which communities and supply chains are supported by family-owned businesses. Many businesses affected by the change to BPR and APR are deeply rooted in their local areas, providing direct employment and sustaining local supply chains, contractors, and services. Consequently, their impact extends far beyond individual estates or balance sheets. Regional and constituency-level data highlight the greatest vulnerabilities in areas with strategically significant firms. In some regions, these changes risk exacerbating regional inequalities and undermining the Government’s goals of reducing regional disparities and enhancing economic resilience.
The proposed policy changes risk substantial economic harm, making it harder for the Government to deliver growth and prosperity
The anticipated reductions in investment, turnover, and headcount all indicate widespread negative impacts on UK economic activity. The comprehensive survey data shows that family businesses and farms are already reducing or actively considering reducing their own activities. These changes are likely to result in a Gross Value Added (GVA) loss of £14.8 billion, putting 208,500 Full-Time Equivalent (FTE) jobs at risk during the forecast period of October 2024 – April 2030. Ultimately, the changes to BPR and APR undermine the stability and growth of family-owned businesses and farms, which are vital pillars of the UK economy. The findings of this report provide a strong case for revisiting the design and implementation of these policy changes to safeguard jobs and the wider UK economy, and to support family businesses.
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