FBUK Policy Agenda - Building Britain for Generations

Building Britain for Generations: A Policy Agenda for Family Businesses

“For successive Governments, there has

When systems change or new digital requirements are introduced it leaves family business owners unsure whether they are compliant.

Issues commonly raised by family businesses from a regulatory perspective include: • A lack of joined-up regulatory working, meaning data is not shared across departments, HMRC, Companies House and other regulators. • A lack of understanding of family business models such as multiple family shareholders, intergenerational ownership, informal governance roles or seasonal workforce patterns, which assumes standard corporate structures and does not accommodate legitimate, but less common, arrangements.

been a lack of clear direction on the regulatory pathway that best fits the UK”

Fig.4. shows that more than four in 10 (41%) said that better understanding of family business models by regulators would help their family business. This figure goes up considerably for larger family-run businesses, who are past the third generation of the business. 45% of family firms that have been in operation for more than 40 years feel that more proportionate regulation for family-owned businesses would help their family comply with regulation.

Recommendations To introduce a climate of stronger regulatory simplification: •

Fig.4 What, if any, changes or forms of support from regulators would most help your family business comply with regulation?

Design digital regulatory systems that understand family business models of ownership. Improve integration and data sharing across Government platforms so that information is entered once and reused wherever possible. Ensure changes to digital systems are accompanied by clear guidance, adequate notice periods and accessible support. Government to simplify and harmonise Corporate Governance thresholds and for the Wates Corporate Governance Principles to be promoted by Government to encourage responsible governance without imposing listed-company- style requirements.

Better understanding of family business models by regulators

40.6%

Clearer and more consistent guidance

31.5%

More proportionate regulation for family-owned businesses

31.5%

31.0%

Digital tools to simplify compliance

Improved access to advice or named points of contact

27.4%

Greater alignment across different regulators

23.8%

Longer lead-in times for regulatory change

23.1%

I don’t think any particular changes/forms of support from regulators would most help our family business comply with regulation Not sure

7.0%

3.4%

0.5%

Other, please specify

0

5

15

20

25

30

35

40

10

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