Some news, views and comments about everything and anything, relevant and irreverent.
The last time Springfords blog took a look at keeping business in the family, we found it to be getting along pretty well, thank you. Since then things have largely gone well around the house for family business.
Step out of Victoria Station in London (which is actually two closely related stations, but that’s another story) and turn right, you’ll soon be at the doors of the Institute for Family Business. Yes, that’s a genuine organisation, and a highly respected one at that. You don’t have to be related to work there, but it helps, and its sphere of interest extends into every sector of the nation’s economy.
The IFB says turnover in family-run businesses increased by two percent to a very healthy £1.3 trillion in the UK in 2015. Employment within such businesses rose by six percent too. Putting that into perspective, the Institute classifies two-thirds of all UK businesses as family, and counts among them very many household names. The research was compiled by Oxford Economics for the IFB, and shows almost twelve million people working in the family way.
Those family businesses pay £125bn worth of taxes each year, but that figure might be revised downwards moving forward, as the recent Budget was generally kind to family businesses. The Institute’s Communications Director, Fiona Graham said family businesses had wanted to see a Budget which supports their ambitions for growth. “As incubators of entrepreneurial talent, the measures announced to encourage growth, such as the cuts to CGT and the extension of Entrepreneurs’ Relief, are important for family businesses. Small businesses especially, the majority of which are family owned, will welcome the changes to business rates.”
More good news is that the family business sector is still coming up with new ideas and innovations. The IFB sponsored research says that one in two of all family businesses are expecting to expand over the next twelve months, either through a move into new markets or launching new products and services.
At Springfords (where we are just one big happy family!) we’re well aware of the importance of family business - not just to the economy, but also to the family. So, if you want to speak to people who understand what business means to the family, as well as what the family means to business, come and have a word with us. We know the value of relative values.