Budget squeezes margins even further for family businesses

Chancellor Rachel Reeves Budget 2025 will only squeexe margins further for already struggling small family firms, says to WSP Solicitors's Amy Leivers.

“Family businesses have been walking a tightrope for years, and the budget (November 2025) will squeeze margins further according to Amy Leivers.

“It unfortunately puts more pressure on SMEs and family businesses.

Leivers, who is deputy managing director and head of commercial property at Gloucestershire-headquartered WSP Solicitors, said the freezing of thresholds on employer National Insurance contributions, and changes to corporation tax allowances will leave businesses of all shapes and sizes facing higher bills.

This comes on top of Chancellor Rachel Reeves’ announcement in her previous Budget of an increase to the minimum and national living wages.

Although mandatory wage increases are well intended, they come on the back of tough decisions made last year and will squeeze margins further, said Leivers.

“Family businesses are concerned about their future stability – many have been walking a tightrope for a number of years against the backdrop of a stagnating economy and cost-of-living crisis.

“These businesses are now having to make tough decisions around restructuring, staffing, investment and innovation.

“As a result, our own research on 200 Gloucestershire-based family firms shows businesses are already pausing and cancelling plans to expand, others are suggesting earlier exits, and some, including 24 per cent of the business owners, managing directors and chief executives are looking to leave the UK all together - taking with them the backbone of country’s entrepreneurialism and innovation.

“There are reports of an estimated 142,000 millionaires expected to leave the country in 2025, our research found 40 per cent are considering moving their business overseas.”

WSP Solicitors has offices in Stroud and Gloucester.