Labour's death tax puts family firms like ours at risk

FAMILY businesses are part of the fabric of our communities and our economy.

- Nick Showering Guest Columnist

Cider farms and other old family businesses are facing a largely uncertain future

They employ local people, support regions and build companies intended to last for generations. My own family knows about that tradition.Showerings began making cider in Somerset more than 180 years ago and became a private company in 1932. Since then, generation after generation of my family has devoted their working lives to the business. Today, we employ around 350 people — many of whom have spent their careers with us — and we think of them as part of the wider Showerings family.

That long-term outlook is what defines family businesses. When your name is on the label or above the door, decisions are made differently. You are thinking about the next generation, not the exit strategy. That’s why many business owners like me are deeply concerned about the government's changes to the way family firms are taxed.

Business property relief was introduced nearly half a century ago by Labour Chancellor Denis Healey to help family businesses survive the transition from one generation to the next. It recognised a simple reality: firms often have substantial paper value but little spare cash. Removing inheritance tax barriers helped them remain intact. From next month, that will change.