Local Budget Comment: Family businesses have been walking a tightrope for years, and today’s budget will squeeze margins further.

In reaction to the Government’s Autumn Budget, please see below comment from Amy Leivers, Deputy Managing Director and Head of Commercial Property at WSP Solicitors, a firm which has been offering straightforward legal advice and support for over 265 years. 

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“Family businesses have been walking a tightrope for years, and today’s budget will squeeze margins further.” 

“Today's budget unfortunately puts more pressure on SMEs and family businesses. The freezing of thresholds on Employer National Insurance Contributions, and changes to corporation tax allowances will leave businesses of all shapes and sizes facing higher bills. This comes on top of yesterday’s announcement to increase minimum and national living wages. Although mandatory wage increases are well intended, they come on the back of tough decisions made last year and will squeeze margins further. 

“Family businesses are concerned about their future stability – many have been walking a tightrope for a number of years against the backdrop of a stagnating economy and cost-of-living crisis. These businesses are now having to make tough decisions around restructuring, staffing, investment and innovation. 

“As a result, our own research on 200 Gloucestershire-based family firms shows businesses are already pausing and cancelling plans to expand, others are suggesting earlier exits, and some, including 24 per cent of the business owners, Managing Directors and Chief Executives are looking to leave the UK all together - taking with them the backbone of country’s entrepreneurialism and innovation. 

“There are reports of an estimated 142,000 millionaires expected to leave the country in 2025, our research found 40% are considering moving their business overseas.” 

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Editors notes

A headshot to accompany this comment can be found here. 

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