Family Businesses — 26 Feb 2025 at 17:14

That this House regrets the Government’s decision to introduce a cap on Business Property Relief, meaning that some family businesses passed down upon death will face Inheritance Tax for the first time in 50 years; further regrets the Government’s other economic policies that will damage family businesses, namely raising employers’ National Insurance contributions, reductions to business rates relief, making employers potentially liable for third-party harassment, the powers in the Product Regulation and Metrology Bill [Lords] that would allow the Government to ban pubs from selling pints, and the provisions in the Employment Rights Bill for guaranteed hours which will make flexible working harder to achieve; and therefore calls on the Government to support family businesses which provide employment for almost 14 million people, and contribute more than £200 billion in taxes each year, by lifting the cap on Business Property Relief, not implementing the increases to employers’ National Insurance contributions and business rates, and powers to change units of measurement, and to stop the progress of the damaging Employment Rights Bill.

“I have spent over 50 years building my engineering business from the ground up, only to now face the possibility that my life’s work could be dismantled due to an unfair tax burden.”

“inevitably reduce future investment in the company.”

“It would also place our business at a considerable disadvantage to our competitors who tend to be listed or owned by private equity, sometimes overseas.”

“My parents left school with no qualifications and over the last 50 years have worked hard paying their way getting on and building a good life and business for us as a family. Since 2007, they have been majority shareholders and owners”

“currently are the 2nd biggest provider of electrical apprenticeships in the UK”

“train 700+ apprentices in partnership with 275 local and national…contractors, many of which reside and work within”

“hold a department of education contract and are recognised by the Electrical Industry in providing a crucial role in training the next generation of electricians”.

“There is no way that I would be able to afford £800k worth of tax to access the business I have helped build and grow over the past 10 years”

“Why would the government want to destroy family businesses, which are crucial to helping local people and provide the growth in the economy in the years to come?”

“When we had a high-trust relationship with the Treasury those things were being well managed, and managed within the total. That system very clearly broke down.”

“there was about £9.5 billion-worth of net pressure on Departments’ budgets, which they did not disclose to us…which under the law and under the Act they should have done.”

“The work of the PRBs is demand led and essentially non-negotiable-departments set the remits and timetables.”

“growth is the number one mission”.

“Wealth creation is our number one priority.”

“Small businesses are the lifeblood of our communities.”

“the beating heart of our economy”

Debate in Parliament |