IFB Autumn Statement Submission
21st November 2013
The Institute for Family Business has today published its Autumn Statement submission, ahead of the Chancellor's announcement on 5th December.
Family businesses are calling on the Chancellor to ensure that as the economy recovers, the UK recognises the considerable contribution that the family business sector makes to growth, investment, jobs and economic prosperity.
Mark Hastings, IFB Director General said: "Family businesses form the backbone of the UK economy, and it is essential that the Chancellor announces measures which support family firms as they look for opportunities to grow and invest. Removing restrictions around the Enterprise Investment Scheme would promote more investment in start up companies.
"As the Government and wider public call for long term sustainable business practices, it is essential that the Chancellor commits to reviewing the tax treatment which favours those who take on debt to invest. Family businesses reinvest their equity and profits in their businesses ensuring growth is affordable and long term, yet the current tax system favours those who take on large debts - this goes against the public's calls for responsible, sustainable growth."
Family Businesses are excellent incubators of the entrepreneurial talent. It is estimated that 13 per cent of family businesses are start-up spin-offs from an existing family firm. A survey of IFB members found nearly a third (27%) of respondents said the Enterprise Investment Scheme connected persons rules made them less likely to invest in a start up. Only 5% said this wasn't a barrier to investment.
Family businesses are today calling on the Chancellor to lift the connected persons' test for a temporary period in order to encourage increased investment in new enterprises.