Overview

• A CBI Economics study commissioned by Family Business UK finds 208,500 full-time positions could be lost by April 2030 under the new relief caps.
• Reforms will limit 100% relief to the first £1 million of business and farm assets and apply a 20% rate above that threshold, generating £1.8 billion in revenue but resulting in a £1.9 billion net fiscal cost.
• Half of family businesses expect to pause or cancel planned investments, triggering a 16% average spending reduction overall and a 17% fall in the agriculture sector.
• Nearly 50% of family firms anticipate cutting staff by an average of 9%, with regions such as Cornwall, Aberdeenshire, Yorkshire, the Midlands and Northern Ireland facing the largest job losses.
• Key sectors including construction, manufacturing, hospitality, the motor trade, agriculture and horticulture are projected to absorb the brunt of the economic impact.