Rising tax and cost pressures forced more than one in five (21%) SME bosses to lay off staff last year, according to a survey commissioned by Rathbones, one of the UK’s largest wealth and asset management groups. A targeted poll of more than 1,000 SME founders, owners and senior executives reveals a challenging landscape for business leaders, with cost pressures - including business rates and national insurance contributions - weighing heavily on firms and contributing to redundancies. Nearly six in ten (58%) say rising taxation or regulatory burdens now pose one of the biggest threats to their business, second only to overall rising costs, which are cited by 70% of respondents. With more than one in four SME leaders reporting that over 25% of their personal wealth is tied up in their business, escalating operational costs are increasingly spilling over into their personal finances. This pressure is intensified by a sharply rising personal tax burden, they say. Frozen thresholds continue to push more individuals into higher tax bands, while cuts to capital gains and dividend allowances - combined with higher CGT and dividend tax rates - are further squeezing returns. For many SME owners who take profits via dividends, these changes have materially eroded post tax income and are forcing a rethink of longstanding profit extraction strategies. Faye Church, Senior Financial Planning Director at Rathbones, says: “We consistently hear from business owner clients across the UK that they are determined to grow, hire and contribute to the wider economy. But heightened tax pressures are increasingly stifling those ambitions. Entrepreneurs are being squeezed from both sides — higher taxes at the business level and rising personal tax bills. This double whammy makes it extremely difficult to plan, invest and build for the future." “For most entrepreneurs, the line between business and personal finances is incredibly thin. Tax changes at either level can have an immediate impact on household income, retirement planning and long-term investment goals. That’s why it’s essential to consider business planning and personal financial planning together, rather than in isolation - particularly in a tax environment that is becoming more complex and less predictable.” Other key findings include: Flexible capacity is on the rise: 9% have increased their use of freelancers or contractors, and 9% have shifted towards more parttime or flexible roles. More than three in five SME leaders (62%) believe the government does not understand the needs of entrepreneurs. Demand for targeted relief: Over half (51%) say that measures such as business rates relief or adjustments to employer National Insurance contributions would directly support growth and investment. Hospitality SMEs feeling the sharpest squeeze The tax and cost burden is proving particularly acute in hospitality. More than 35% of hospitality SMEs say they have been forced to make redundancies - significantly above the overall SME average - while 69% say increased taxation or regulatory burden is now one of the biggest threats to their business. This comes as the sector intensifies its calls for further business rates support. In last year’s Budget, the Chancellor reduced pandemic era business rates relief from 75% to 40%, with the measure due to expire entirely this April. While the government has announced support for pubs, no comparable guarantees have been extended to the wider hospitality industry. Faye Church adds: “Calls from the hospitality sector for targeted relief highlight the increasingly painful pressures facing these businesses. Without action, the mounting tax and cost burden risks stifling the very growth, innovation and local regeneration the UK economy urgently needs - particularly from a sector that employs so many and contributes so much to communities nationwide.”

Gender-based quotas are an effective way to challenge power structures and improve the number of women on major board committees, finds new research by emlyon business school. But ownership matters: state and institutional investors open the door, while family owners often keep it firmly shut. The study, conducted by Professor Jean-Luc Arregle, Professor of International Strategy at emlyon business school, and his co-authors investigated how national quotas and corporate ownership influence the likelihood for firms to be superficial when appointing female members to boards of directors on major board committees. They found that quotas triggered actions and practices that challenge power structures and resulted in more women appointed to major board committees (MBCs), relative to their presence on board of directors (BOD). “These findings alleviate our concerns that quota passing would result in tokenism – the practice of making superficial or symbolic effort, without addressing the problem – where firms would appoint women to BOD but would refuse to grant them influential positions such as MBC membership,” says Professor Jean-Luc Arregle. However, the researchers also found that corporate ownership has a strong influence on gender diversity on MBCs. Institutional investors and state-owned firms tend to be more supportive of female representation on MBCs. Interestingly, the researchers found that family-owned companies appear to hold more conservative values, and therefore decrease gender diversity on MBCs. This suggests that family owners are less susceptible to societal expectations and values. “It is important to highlight that in our data sample, women are underrepresented in all key corporate leadership positions. Only 1.36% of CEOs are women, and only 1.75% have a female board chair. In 49% of the companies, there was not a woman on a major board committee,” says Professor Jean-Luc Arregle. For governments, the takeaway is clear: well-crafted gender quotas do not lead to empty representation. For institutional investors and governance activists, the findings affirm that ownership is power. By using their influence to support not just diversity but substantive inclusion, investors can push for governance practices that are both fair and effective. For family firms, there is an opportunity to reconsider internal norms and recruitment strategies. Making space for women in governance is not just a matter of social responsibility. It is also a pathway to better decision-making, broader talent pools, and stronger alignment with evolving societal expectations. This study analysed 3500 publicly listed firms across 25 countries and was published in the Journal of Management Studies.

Scotland’s largest furniture retailer, Sterling Home, has announced a new collaboration with broadcaster and personality Vogue Williams for an exclusive furniture collection available only through its stores in Scotland. The broadcaster is swapping the studio for sumptuous settees, bringing her expert eye for design and effortlessly blending comfort with style. The collection reflects Williams’ signature style, Irish heritage, and approachable sense of luxury. Euan Graham, Director and 3rd-Generation Family Member at Sterling Home commented: “This partnership brings together Vogue’s creative energy with our commitment to accessible, quality design. Her warmth, authenticity, and enthusiasm for home styling align with our brand values and customer expectations. The resulting range is a considered blend of comfort, colour, and craftsmanship.” Williams shared her excitement about the collaboration. "I've always loved interiors. It's where I get to be creative, there's no right or wrong - it’s just about what brings you joy. It's been so much fun blending striking looks with a collection made for everyday living. It has to work for you and your family, not just look gorgeous! Seeing it land in Sterling Home stores across Scotland was a real 'wow' moment!" The Vogue Williams furniture collection is available now at Sterling Home . Sterling Home, formerly Sterling Furniture, is Scotland's largest furniture retail powerhouse, founded in 1974 by George Knowles in a repurposed Tillicoultry mill that pioneered out-of-town shopping north of the border. Bringing together a curated offering of furniture, accessories, flooring and interiors ensures customers can find everything for their homes under one roof – a concept that makes for a truly unique and forward-thinking shopping experience.  Today, that pioneering vision continues as Sterling Home offers premium sofas, beds, dining sets, and homewares blending timeless craftsmanship with modern style for every budget. Known for Dougie Donnelly’s cheeky TV ads shouting “Tillicoultry, near Stirling,” Sterling Home are respected for delivering quality, exceptional service, and inspiring designs that have furnished Scottish homes for over 50 years.

St Austell Brewery is proud to announce Children’s Hospice South West as its Charity of the Year. The company - which is marking its 175th anniversary this year - has committed to raising vital funds over the next two years for the only children’s hospice charity in its region. For more than 30 years, Children’s Hospice South West (CHSW) has supported babies, children and young people with life-limiting conditions, providing specialist care and compassionate, professional support for the whole family. Across its three hospices in Cornwall, Devon and North Somerset, CHSW offers far more than medical and nursing care. Every stay is designed to enrich lives, creating precious moments, easing emotional and practical pressures, and helping families make the very most of their time together. One of St Austell Brewery’s key fundraising initiatives will be donating 25p from every portion of fish and chips sold across its 45 managed pubs, expected to generate a significant contribution to the charity. Alongside this, teams across the company’s head offices, breweries, pubs and depots will be taking part in events and fundraising activities throughout the year. Kevin Georgel, Chief Executive of St Austell Brewery said: “We’re incredibly proud to announce Children’s Hospice South West as our Charity of the Year. It was chosen by people from every part of our business, which shows just how close this cause is to all our hearts." “It costs more than £14 million each year for the charity to run its three hospices and provide vital care for children and families during unimaginably difficult times. The fact that these hospices span the South West - near our pubs, breweries and depots across the region - gives us a real opportunity to raise as much as we can for the communities we operate in and make a meaningful difference.” Phil Morris, Chief Executive of Children’s Hospice South West, added: “We are absolutely delighted that St Austell Brewery has chosen Children’s Hospice South West as their charity partner for the next two years. Their commitment and support will help us provide vital services to children with life-limiting conditions and their families who are travelling the most unimaginable journeys.” St Austell Brewery and Children’s Hospice South West are united in their commitment to supporting communities and creating a positive impact across the region, making the new partnership a natural fit. Alongside its Charity of the Year, St Austell Brewery also raises funds for its Charitable Trust, which has donated more than £1 million to local causes - in the places it operates pubs and breweries - since 2003. For more information about Children’s Hospice South West visit here .

A Lake District hospitality venue is manufacturing its own home-made, flavoured crisps for guests to enjoy in its bar, restaurant and microbrewery.   Wild Boar Estate is producing the crisps which can be served hot or cold with different toppings and sauces as a tasty pre-dinner snack, as well as for bar nibbles and an ideal accompaniment to the craft ales it produces on site.   Head chef Dylan Evans has been developing his crisp making technique with the addition of a special crisp fryer in the Grill and Smokehouse restaurant kitchen at the hotel.   The idea behind the crisp making initiative came from a visit home to Ostrava in the eastern Czech Republic by English Lakes Hotels general manager Adam Bujok, when he happened upon a popular venue which produced its own potato based snacks.   Adam and Dylan discussed and developed the idea before purchasing the crisp making equipment and devising a number of flavours for the venue.  The crisp flavours include black truffle and smoked salt with a classic garlic ketchup, rosemary salt and cider vinegar with a lemon and confit garlic aioli, and smoked paprika and Mexican oregano with a chilli jam.   The restaurant team at Wild Boar Estate cooks up the freshly made crisps to order and is raising its stock levels of potatoes in anticipation of increasing customer demand and interest in the new snacks.  There is also the potential for the venue to produce other types of crisps using alternative root vegetables such as beetroot, carrots, parsnips and sweet potatoes.   Adam explains: “When you open a really good bag of crisps, you often take for granted that wonderful crunch of the first mouthful – and of course we all have our favourite flavours." “On my visit home to Ostrava, I visited a venue where they made their own crisps in a range of flavours and they were great with a beer before dinner.    I thought it’s not something you experience much in the UK and that we could easily do the same and come up with a tasty snack in-house to be paired with our craft ales and become a talking point for our guests.”   Dylan adds: “There’s no special secret ingredients or mysterious techniques in making your own crisps, other than ensuring that that they get cut to the optimum shape and size.  Slicing them as thinly as possible gets the best results.  We leave the skins on and dry the sliced potatoes to get rid of excess starch, before seasoning the crisps using the fryer and associated equipment."  “And there’s really no limit to the number of flavours you can try, so we’re already experimenting with other ingredients and tastes for guests to sample and savour.  No doubt everyone will have their own favourite.”   Photo: Dylan Evans and Adam Bujok from Wild Boar Estate with the venue's new home-made crisps.

Croxsons, a 150-year-old family business that manufactures premium glass packaging for the food and drink sector, has developed the country’s first British-made sparkling wine bottle. The Sovereign bottle has been designed to elevate and support the burgeoning English and Welsh wine-making industry closing the provenance loop from vineyard to bottle. Winemakers have until now relied entirely on imported bottles transported across Europe. The English and Welsh wine industry is one of the fastest growing agricultural sectors in the country with over 1000 vineyards (WineGB July 2024) and is estimated to be worth £422m in 2025 growing at a CAGR of 3.5% over the last five years (IBISWorld November 2025). Sales of sparkling wine have risen 187% since 2018, from 2.2m bottles to 6.2m in 2023 (WineGB), making this the perfect time to bring sparkling wine bottle production home. The Sovereign bottle will be produced in England and rather than the traditional green colour of European sparkling wine bottles, the British bottle will be made using a distinctive amber glass. This will give the bottle a strong shelf standout and clear British provenance. Tim Croxson, CEO of Croxsons commented on the launch; “We are incredibly proud to launch Sovereign, the UK’s first British made sparkling wine bottle, delivering improved sustainability while ensuring British drinkers enjoy wine that is British through and through." “Six generations of our family have been involved in the wine trade, beginning as a bottle supplier to the London wine trade 150 years ago, so it feels particularly fitting that we are now helping the English and Welsh winemaking industry deliver a truly British sparkling wine bottle.” The Sovereign bottle uses 77% recycled content which improves its sustainability credentials and with a shorter journey from factory to vineyard, it will reduce road-miles for millions of bottles traditionally transported from France, Germany and Italy. This launch builds on Croxsons’ wine expertise working alongside English wine brands including Lyme Bay and Ridgeview Wines. Matt Gayler, Operations Director at Ridgeview Wine said: “Seeing a UK-made sparkling wine bottle available to producers is a great milestone - it shows just how far the industry has come." “As we continue to build the reputation of English wine both at home and internationally, having domestically manufactured, high-quality packaging supports our identity, sustainability and ambitions." “It’s a positive step forward and we’re grateful to those who’ve worked hard to make it happen.” The Sovereign bottle will be produced in March 2025 and can be ordered direct from Croxsons .

Tims is accelerating growth within the kefir category with a series of new listings across major UK retailers, reinforcing its position in the fast-growing functional dairy sector. Greek Family Vanilla Kefir Launches into Waitrose and Ocado Tims has expanded its kefir portfolio with the launch of a new Greek Family Vanilla Kefir (450g), now available in most Waitrose stores and online via Ocado. The new Vanilla variant builds on the strong momentum of the Tims Greek Family Kefir range, responding to rising consumer demand for flavoured functional dairy products that combine great taste with health benefits. Produced using a unique Greek-style kefir process, the range contains 12 live bacteria cultures and is lactose free, broadening its appeal to shoppers seeking digestive health support without compromising on flavour or texture. The product delivers a thick, creamy consistency more commonly associated with Greek yogurt, alongside a milder, more accessible kefir taste. Kefir continues to gain traction as shoppers look to incorporate gut health into everyday diets, and Tims reports strong growth across its kefir range, driven by quality and a delicious, milder taste profile. The new Waitrose and Ocado listings strengthen the brand’s presence in premium and online retail, supporting further growth within the expanding cultured dairy category. Tims Launches 150g Greek Family Kefirs into Morrisons Tims has also extended its Greek Family Kefir range with the launch of new 150g single-serve formats in both Natural and Vanilla, now available in Morrisons. The two SKUs have launched as a paired listing and are supported by an introductory multibuy promotion designed to drive trial and encourage repeat purchase within the kefir category. The new 150g formats respond to growing demand for portion-controlled, on-the-go functional dairy, while retaining the core credentials of the Greek Family Kefir range. Each product is made using Greek family production methods, contains 12 live bacterial cultures, is lactose free, and delivers a thick, creamy texture with a balanced flavour. By broadening its format offering, Tims aims to unlock new consumption occasions, from breakfast and snacking to lunchboxes, while supporting category growth through accessible pricing and promotional activity.

The Munnelly Group has announced strong annual results for the year ending 2025, with the business demonstrating ‘resilience and strategic discipline’ in what continues to be a challenging market environment. One of the UK’s leading construction and infrastructure delivery partners, the multi-brand group has continued to deliver stability, growth and exceptional value to its clients, despite sustained margin pressure and industry-wide uncertainty. Key figures from the annual results for 2025 include: Turnover: £167m. Profit Before Tax: £1.55m. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation): £2.26m. Cash Reserves: £7.3m, representing a 35% increase year-on-year. No third-party borrowing. Last year, the business moved to ensure future continuity with a leadership transition, which saw long-term CEO Phil Munnelly move into the new role of Chairman and be replaced by his son, Paul David Munnelly. Throughout 2025, the Group has continued to expand into new markets, deepen client partnerships and invest in technology and ESG initiatives to future-proof the business. This strategic repositioning has strengthened the Group’s role as a delivery partner across the built environment, supporting projects from early engagement through to completion. With a healthy order book, strong liquidity and a diversified operating model, the Munnelly Group now enters 2026 well-positioned for continued growth, investment and expansion. Phil Munnelly, Chairman of the Munnelly Group, commented: “These results reflect more than financial performance. They demonstrate the value of diversification, disciplined decision-making and a relentless focus on operational excellence. In a difficult market, the Group has remained resilient, adaptable and well-positioned for the future.” Graham Fisk, Group Finance Director, added: “Maintaining a strong balance sheet with no third-party borrowing has been a key priority. This financial discipline gives the Group the flexibility and confidence to invest, adapt and pursue growth opportunities as markets evolve.” Paul David Munnelly, Group CEO, added: “The Munnelly Group enters 2026 from a position of strength. With a strong balance sheet, diversified service offering and clear strategic direction, the Group is focused on continued investment in people, systems and capability." “Alongside organic growth, the Group will also actively explore selective, disciplined acquisition opportunities that align with its long-term, sustainable and risk-managed strategy, as we further strengthen our position across the built environment.” Established in 1982, Munnelly Group has evolved into a leading multi-business organisation, delivering innovative solutions across technology, geospatial surveying, preconstruction consultancy, access control, security, resourcing, payroll and construction logistics. Photo: CEO Paul David Munnelly and Group Chairman Phil Munnelly.

Simpsons Malt Limited, the independent, fifth-generation malting and merchanting business and Certified B Corporation, has successfully completed SAI Platform’s Farm Sustainability Assessment (FSA) third-party verification process, achieving Gold performance level across its entire UK malting barley procurement. A total of 678 growers – all directly contracted through agricultural merchanting division McCreath Simpson & Prentice – now form a single Farm Management Group (FMG) for malting barley following an audit of the group in late 2025. The achievement marks a significant milestone for sustainable sourcing within the UK malting barley supply chain and builds on the company’s distilling wheat Farm Management Group achieving 100% FSA Gold performance level in 2024. Together, this means that all of Simpsons Malt’s directly contracted malting barley and distilling wheat purchases are now verified at Gold performance level. For farmers within the group, which spans from the Highlands of Scotland down to the south of England, achieving FSA Gold verification independently confirms they are operating to first-class sustainability standards across a wide range of environmental, social and economic criteria. This includes soil and nutrient management, crop protection, biodiversity, community impact and employee welfare. It also demonstrates engagement with a Simpsons Malt-led continuous improvement plan, while showing compliance with a trusted, globally recognised framework that assesses the whole farm business rather than individual crops. For Simpsons Malt’s distilling and brewing customers, meanwhile, the verification provides confidence that malting barley processed at both its malting sites – Berwick-upon-Tweed, Northumberland and Tivetshall St Margaret, Norfolk – has clear assurance and supply chain traceability. It is also helping to support these customers towards meeting their own sustainable sourcing objectives. Ben Gothorp, Sustainability Manager at Simpsons Malt Limited, said: “Achieving 100% FSA Gold performance level across our UK malting barley procurement is a huge achievement and it wouldn’t have been possible without the commitment and hard work of all our contracted growers." “It means that every tonne of malting barley that we purchase from contracted UK growers is now verified to the highest FSA standard, highlighting significant progress being made with sustainability on-farm and giving confidence to our distilling and brewing customers in how their raw materials are sourced.” One of the growers involved in the audit process, Jim Macfarlane of Thornhill Farming Partnership in Foulden, Scottish Borders, added: “Audits are an important aspect of modern-day agriculture and I like FSA as it looks at the whole farm business and recognises the practical steps farmers are taking to improve sustainability, while maintaining productivity." “Being selected for audit has been a positive experience as it has helped me stay on top of my game and I’m grateful for the support of the Simpsons Malt sustainability team, who were available to answer any questions that I had throughout the process.” Jessica Joubert, Capability & Assurance Manager at SAI Platform, said: “It’s inspiring to see a fifth-generation family business like Simpsons Malt Limited pair deep-rooted tradition with a clear commitment to sustainable farming." "Achieving 100% FSA Gold verification across such a large malting barley grower base – and doing the same for their distilling wheat supply chain – is an exceptional accomplishment and sets a new benchmark for the UK. Congratulations to Simpsons Malt and their farmers on this outstanding achievement.”

Aldi, the UK’s fourth-largest supermarket, is to invest £370 million this year to open new stores across Britain. This includes the development of new stores in Southam in Warwickshire, Hastings in East Sussex, and Amersham in Buckinghamshire, with the supermarket targeting 40 new store openings this year. This forms part of Aldi’s £1.6 billion two-year investment programme announced last year, as the retailer works towards its long-term ambition of operating 1,500 UK stores. The investment follows an equally busy store opening programme in 2025, which saw Aldi open new stores including Kirkintilloch in East Dunbartonshire to Eastbourne, East Sussex, and in locations such as Fulham Broadway in London and Deeside in Wales. Giles Hurley, Chief Executive Officer at Aldi UK and Ireland, said: “Our unwavering commitment is to make high-quality, affordable groceries accessible to everybody. But we recognise that there are still areas without an Aldi store, so our expansion plans for 2026 are designed to address some of these gaps as we work towards our long-term goal of 1,500 UK stores." "We’ve always believed that access to high-quality affordable food is a right, not a privilege, and that’s why it’s our mission to make this a reality for customers up and down the UK.” The supermarket recently released new figures showing that families in over 200 UK towns are paying up to £2,437 more per year on their grocery shopping simply because they lack access to an Aldi supermarket.* Aldi has been named the UK’s cheapest supermarket by consumer group Which? for the fifth year running. Last week, Aldi also won The Grocer’s ‘Super Grocer 33’ – a survey comparing the price of a 33-item basket of groceries at all major UK supermarkets – for the seventh consecutive time, highlighting its position as the best value for British shoppers. Earlier this month, the supermarket announced it was increasing its already-market-leading pay rates for store colleagues, with Store Assistant rates rising to £13.35 an hour nationally (and up to £14.30 with service) and £14.71 within the M25 (rising to £15.03 with service), effective from 1st March 2026. Those interested in applying for jobs at Aldi can visit here . * View link

The House of Lords Economic Affairs Committee has published its findings into 'Inheritance Tax Measures: Unused Pension Funds And Agricultural And Business Property Reliefs' and the report criticises the lack of consultation undertaken prior to the initial announcements on APR and BPR in the Autumn 2024 Budget. The Government has faced strong lobbying and campaigning on the topic and in December 2025 announced a revision to the rules with limits increasing from £1 million to £2.5 million per individual but family businesses are still at risk and we will continue to campaign on their behalf for a detailed consultation and reversal of the policy. The report from the sub committee criticises the lack of consultation and the full report can be read here In particular the report comments on the specific areas as outlined below: APR and BPR reforms It is disappointing that the Government announced these reforms in the 2024 Budget without undertaking a prior consultation on how to reform APR and BPR, setting out its policy objectives clearly. This is particularly the case given that the reforms are to an area of taxation that has existed in its current form for over 30 years, and in relation to which many taxpayers will have made long-term decisions . (Paragraph 376) Engagement with relevant stakeholder organisations should have begun much earlier to enable a more effective policy-making process. It may have also helped to reduce the level of uncertainty, confusion and worry felt by those who will be impacted by the changes, and avoid the need for significant changes to the original proposal only months before the reforms came into effect. (Paragraph 377) Although the APR/BPR Consultation provided an opportunity for stakeholder engagement, it was too narrowly focused on technical details to give stakeholders a meaningful opportunity to comment on broader issues. (Paragraph 378) Although we welcome the fact that HMRC has subsequently engaged with key sector stakeholders, we are concerned that those stakeholders feel their concerns have not been listened to. (Paragraph 379) Given that the reforms are now less than three months away, HMRC should, as a priority, establish a working group with relevant professional and business bodies to address their concerns and clarify how the policy will operate in practice, so as to minimise practical uncertainties for those affected and reduce the risk of unintended consequences. (Paragraph 380) The Tax Policy Making Principles: We are disappointed by reports that there was a lack of meaningful consultation with relevant stakeholders in the development of the Principles . As a result, we are concerned about the lack of clarity as to why the Government considered it necessary to withdraw the Framework, rather than simply update it. (Paragraph 390) The Government should set out the steps it will take to keep the Principles under review. Such steps must include actively engaging with relevant stakeholders to ensure their views on the operation and the appropriateness of the Principles are properly taken into account. (Paragraph 391) We appreciate the need in certain circumstances for speed in policy development. However, we are concerned that under the Principles, the Government may pursue speed to the detriment of effective policy that has been subject to meaningful consultation. (Paragraph 398) The Government must not move away from the principle that open and public consultation serves a useful and important purpose in developing effective tax policy. (Paragraph 399) Our findings in previous chapters about the Government’s approach to consultation on measures examined in this report appear to bear out the issues raised by witnesses about what the Principles will mean for consultation on tax policy in the future. (Paragraph 400) The Government should adopt the presumption that there should be a formal public consultation, generally at an early stage, on tax policy, unless there are specific reasons against this. Where the Government decides against a formal public consultation, it should publish this decision and explain why. (Paragraph 401) Agile consultation, including where it involves private meetings with stakeholders, need not lack transparency. The Government should publish information about who they have consulted for specific measures. (Paragraph 402) Effective engagement with academics on tax policy can bring valuable insight into the policy making process. (Paragraph 404) Given the statement of intent in the Principles, the Government should set out what steps they are taking to engage with academics on tax policy development. (Paragraph 405) Providing details about the data sources used to develop a particular policy, and publishing the data itself, can help ensure stakeholders can contribute to good policy development. (Paragraph 408) In order to model the impact of proposed tax reforms effectively, it is important that the Government has access to good data. It is concerning to hear that this may not always be the case. (Paragraph 409) The Government should be proactive in sharing the data it is using to make policy decisions in a timely manner, at an early stage of policy development. (Paragraph 410) The Government should carry out a review of the data sources it uses in evaluating and measuring tax policy changes and take appropriate steps to ensure that the data it uses is not only reliable, but the best data available. (Paragraph 411) The Government should set out how it intends to assess whether the principles have been complied with when developing new policies. (Paragraph 415) The Government should carry out a review of the operation of the Principles following the 2026 Budget. The review should engage with tax professional bodies and other relevant organisations to obtain their input into the operation of the Principles in practice. (Paragraph 416) As Paul Andrews, Founder and CEO of Family Business United explains, "We welcome the findings of this report and the fact that it highlights some of the areas of concern that the family business community have been campaigning to address." "We also welcome the revisions to the policy announced in December but for Britain's larger family firms, many of them multigenerational that have been investing in growing their businesses for generations, the changes reduce the impact to a degree but will not remove what will remain as a large inheritance tax liability going forward." "We will continue to support a full review of the policy and campaign for it to be fully reversed so that family farms and businesses can focus on growing their businesses and continuing to make a significant economic contribution to the UK economy."

Family businesses occupy a unique niche in the corporate landscape. They are often defined by their long-term perspective, deep-rooted culture, and the emotional capital embedded in their ownership structures. Yet these same characteristics can create challenges when it comes to leadership succession. Increasingly, many family enterprises are turning to non-family CEOs and senior executives to guide the next stage of growth. While bringing in outsiders offers significant opportunities, it is not without risks, and the decision requires careful consideration of both the business and family dynamics. As Paul Andrews, Founder and CEO of Family Business United explains, "Recruiting a non-family CEO is a big step for many families in business and is not something that should be entered into without significant thought. The family and the business need to be ready for the insight of a new leader, and not only be prepared for their insight, but also to empower them to make the decisions which they have been recruited to make. Finding the right individual, developing the right framework and governance mechanisms to make the relationship work and defining and clarifying roles and responsibilities, and boundaries for decision making is essential." "A non-family CEO can be a challenge and can take time for the family and the business to adjust to the change but it can also provide significant opportunities too." One of the most compelling arguments for recruiting a non-family CEO is the injection of professional expertise and fresh perspective. External leaders often bring extensive experience in scaling businesses, implementing governance structures, or navigating complex markets. They are more likely to challenge entrenched practices, introduce new strategic frameworks, and bring a level of objectivity that family insiders may struggle to maintain. In family firms where the founding generation or current leaders have been heavily involved in day-to-day operations for decades, this external perspective can catalyse innovation, professionalise processes, and drive growth beyond what might be possible under a family successor. Non-family executives also offer credibility to investors, lenders, and other stakeholders. Appointing a seasoned professional signals that the company is serious about governance, performance, and transparency. For firms seeking to expand internationally, access capital markets, or undertake significant strategic transformations, this external legitimacy can be invaluable. It may also ease internal tensions by providing a neutral arbiter in disputes between family members over strategy, investment priorities, or succession planning. At the same time, integrating an outsider into a family business is rarely straightforward. The cultural fit challenge cannot be underestimated. Family businesses are often governed as much by informal norms, relationships, and historical patterns as by formal processes. Non-family CEOs may find themselves navigating complex emotional dynamics, conflicting expectations, and unspoken rules about authority and decision-making. Misalignment between the CEO’s management style and the family’s values can generate friction, slow decision-making, or even provoke attrition among long-standing employees. Trust is another critical factor. Families may struggle to relinquish control to an outsider, particularly when ownership stakes and long-term legacy are at risk. Decisions that would seem routine in a non-family corporation, such as restructuring, cost-cutting, or divesting underperforming divisions, can carry disproportionate emotional weight in a family enterprise. Without careful onboarding, mentoring, and clarity on decision rights, the CEO may feel constrained, while family members may perceive any independent action as a threat. There is also the matter of succession and continuity. While a non-family CEO can professionalise operations and prepare the firm for the next phase of growth, their tenure is often inherently limited. Family owners may still aspire to see a member of the next generation take over eventually, which can create tension if the outsider’s initiatives clash with long-term family ambitions. Balancing the desire for professional leadership with the family’s legacy objectives requires clear communication, well-defined governance structures, and an agreed strategy for eventual leadership transition. Moreover, hiring an external CEO does not automatically solve the challenge of developing future family leaders. Some critics argue that reliance on outsiders can unintentionally delay or diminish the next generation’s involvement, leading to disengagement or a weaker talent pipeline. Conversely, the presence of a skilled outsider can create a structured environment for mentoring and development, offering next-gen family members the opportunity to learn at a strategic level before assuming leadership roles themselves. In practice, the most successful family businesses strike a careful balance. They define clear boundaries between ownership and management, articulate expectations for the non-family CEO, and create forums for constructive dialogue between the family and executive team. Formal agreements, such as employment contracts with well-specified roles, performance metrics, and exit clauses, can mitigate many of the risks while preserving flexibility. Cultural onboarding, mentoring, and regular engagement with the family board or council are equally crucial to ensure alignment. As Paul concludes, "Recruiting non-family CEOs and senior executives can offer family businesses a powerful mechanism to professionalise operations, inject strategic acumen, and accelerate growth. Success depends on careful selection, cultural alignment, robust governance, and ongoing attention to the delicate interplay between family priorities and business imperatives - communication is key." For those family enterprises willing to navigate this balancing act, the payoff can be substantial: a firm that is professionally run, strategically agile, and prepared for sustainable growth across generations.