APPENDIX 1: METHODOLOGY
To gather robust primary data, CBI Economics surveyed family business owners as part of its wider post- Autumn Budget survey of all business owners. Of more than 4,200 respondents, 4,147 were deemed to be family businesses and farms with at least 25% of the estate owned by members of the same family. Within this, 96% of respondents were small and medium-sized enterprises (SMEs) with the remainder being large businesses employing more than 250 workers. Oxford Economics estimated that in 2020, approximately 99.9% of family businesses were SMEs. 10 There was also broad geographical coverage across all UK regions.
Figure 16: Geographical coverage of entire survey sample
14.8%
13.6% 13.4%
10.7%
9.6% 8.9%
6.9% 6.3% 6.2%
4.6%
2.8% 2.4%
Respondents were asked to provide an estimated timeframe of when they expected to undergo a change in ownership. In our previous survey, if they responded as being after April 2026, when the change comes into force, and before April 2030, approximately the end of the Parliamentary term, they were deemed to be within scope of the exercise. In line with the revisions to BPR and APR, steps have been taken to mitigate individuals avoiding the newly established relief limits by executing lifetime transfers prior to the implementation of the new regulations. To account for the effects of these anti-forestalling measures, our scope of affected businesses widened to include those undergoing ownership changes before April 2026 in the economic modelling. The noticeable trend towards proactive measures is significant, as it accelerates the occurrence of economic and fiscal effects within the designated timeframe. CBI Economics asked respondents by what percentage they expect investment, turnover and employment within their business to increase/decrease as a result of changes to BPR and APR. This gave the following table, grouped by sector and the average change in investment, turnover and employment within that sector.
10 Oxford Economics (2022) The State of the Nation: The UK Family Business Sector 2021-22
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