The Institute for Family Business (IFB) says 80 per cent of its members are less confident going into this winter than last year at the height of the pandemic.
The IFB, the UK’s largest family business organisation, is calling on the new Government under Prime Minister Rishi Sunak to take substantial measures to help tackle inflation and combat rising interest rates. Both of which are damaging businesses’ ability to invest in their future.
According to the family business organisation, over half of firms said that rising inflation is a considerable threat to their future , while energy support measures for business will only “slightly help” firms this winter.
Family firms are looking to the Government for a long-term economic plan to help provide stability for business investment. The IFB wants to see clarity on the rise of business rates scheduled for next year and for the Government to get a grip on reducing inflation and rising interest rates. Three-quarters of family companies say they feel unconfident about the economy over the next year and are looking for a long-term economic plan to help provide stability for businesses to invest.
Around five million UK family businesses provide jobs for 14 million people and are the backbone of the economy. Their contribution goes beyond this, family companies foster thriving local communities and high streets, as well as support creativity and innovation. The Government must recognise the societal and economic value of these businesses and instigate a tax and investment environment designed to support business growth. This is especially important given the vital role family businesses played during the pandemic up and down the country and their integral role in levelling up local communities across the country.
To celebrate their successes, the IFB is hosting its annual Family Business Week (FBW 2022) in partnership with NatWest from Monday 21 – Friday 25 November. Ahead of the autumn statement, the IFB is keen to ensure that business support is directed towards supporting businesses through the difficult months ahead.
Now more than ever it is important to celebrate family businesses’ place in the world and highlight the vital role that they have played in helping communities rebuild following the pandemic and how they are supporting their local areas during the cost-of-living crisis.
Neil Davy, Chief Executive of the Institute for Family Businesses (IFB) said:
“Our members have been battling rising inflation over the last six months with no clarity from previous Governments about how it plans to help address the current economic difficulties, reduce inflation or build a stable climate for businesses to invest. Under Rishi Sunak, we want to see a clear plan to help stabilise the economy and provide real incentives to help businesses invest in the economy and their local communities which are the backbone of the UK.
“With Family Business Week taking place a week after the autumn statement, it’s more important than ever that the Government acts to protect family businesses who face skyrocketing bills and are worried about their survival. We will continue to press the Government to ensure that support is delivered so firms can survive the winter months and begin to invest again in their futures and grow the economy,”