BHETA is standing up for the family-owned suppliers and manufacturers at the heart of our industries. We have joined a nationwide campaign calling on the Government to reverse recent changes to Business Property Relief (BPR), which we believe put investment, jobs and long-term British ownership at risk.
BHETA's General Manager, Steve Richardson, has signed an open letter to Chancellor John Healey, coordinated by Family Business UK (FBUK) ahead of the Autumn Budget on 28th October. We are lining up alongside other UK trade bodies in a campaign that represents more than 200,000 companies across the country.
The backbone of the UK economy
Family businesses make up around 93% of UK private-sector firms and employ 15.8 million people. FBUK estimates they generate £985 billion in Gross Value Added and contribute £422 billion in taxes every year.
They're also a vital part of the sectors BHETA represents. As Steve explains:
"Family-owned companies are an important part of the housewares, small electricals, DIY, home improvement and garden industries that BHETA represents. Following discussions with the members affected, BHETA is concerned that the inheritance tax reforms risk diverting investment from jobs, product development and growth among UK family-owned suppliers."
What has changed, and the impact so far
Since April 2026, full Business Property Relief only applies to the first £2.5 million of qualifying assets. Above that threshold, assets receive 50% relief, which creates an effective inheritance tax rate of 20%.
The effects are already being felt. FBUK's July 2026 survey of more than 530 family-business leaders found that:
- 58% had been affected by the changes
- 24% had paused or cancelled planned investment
- 23% had reduced headcount or paused recruitment
FBUK also warns that the policy creates an uneven playing field. Overseas-owned businesses, listed companies and private-equity-backed firms don't face an equivalent inheritance tax charge when an individual shareholder dies.
Why it matters for investment and growth
For many family-owned suppliers, most of the company's value is tied up in the business itself rather than held as cash. Steve explains why that makes the reforms so significant:
"These businesses often reinvest over generations in brands, product development, stock, people, and their communities. If succession suddenly requires significant sums to be extracted from the business, that capital must still come from somewhere, which could therefore mean less for new products, recruitment, exporting or investment. Or equally, additional borrowing and, in some cases, pressure to sell part or all of the company."
He added that this sits uneasily with the Government's own ambition to grow business investment:
"We believe long-term British ownership should be encouraged rather than penalised, which is why BHETA is supporting Family Business UK's call for the Chancellor to reconsider these reforms."
What happens next
The campaign is calling for 100% BPR to be restored for qualifying family businesses. All eyes now turn to the Autumn Budget on 28 October, and BHETA will keep members updated on the outcome.
This campaign is part of BHETA's wider lobbying programme, giving our members a voice on the issues that affect their businesses. If your family-owned business has been affected by the changes, we'd like to hear from you.
Find out more about BHETA's lobbying work at https://www.bheta.co.uk/lobbying
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