New polling shows family businesses facing historic pessimism about the UK economy

Jobs Foundation research finds confidence lower than at any point in recent decades, with succession and tax changes compounding pressures.

New polling commissioned by the Jobs Foundation reveals a profound loss of confidence among family businesses, with owners warning that the UK is becoming an increasingly difficult place to invest, grow, and pass on a business to the next generation.

The survey of 1,150 family businesses and family farms, conducted by Whitestone Insight, finds that 78 per cent of owners are pessimistic about the UK economy in 2026. Only 17 per cent would advise a young entrepreneur to set up a business in the UK, with many more pointing to alternative destinations overseas.

In a striking assessment of the current business environment, respondents were five times more likely to say that the 1970s offered a better tax and regulatory climate than the 2020s. Just one per cent believe the present decade is the best period for business in recent history.

The research highlights widespread concern about the impact of recent Budgets. Nearly two-thirds of family businesses say they have been harmed by government policy, compared with just three per cent who report any benefit. Four in five owners agree that the Government does not understand what it is like to run a business, and a majority believe current tax arrangements discourage hard work, risk-taking, and enterprise.

Changes to Business Property Relief and Agricultural Property Relief emerge as a particular source of anxiety. Many family businesses report that new inheritance tax liabilities are already influencing succession planning, with fears that firms will be broken up or sold to meet tax bills. Almost two-thirds of owners say it is demoralising that they may no longer be able to pass on as much of their business or wealth to their successors.

Commenting on the findings, Jobs Foundation President Lord Matthew Elliott said the results should serve as a warning that policy decisions risk undermining the family business model that underpins jobs and opportunity across the UK. He argued that without a more supportive environment for long-term investment and succession, the consequences for employment and local communities could be severe.

The Jobs Foundation is calling on policymakers to listen more closely to family businesses and to prioritise measures that reduce costs, support investment, and make it easier for successful firms to remain rooted in the UK for generations to come.

You can find the full report here.