A leading county law firm has revealed that more than 60 per cent of Gloucestershire's family businesses fear for their future.
According to data from WSP Solicitors – which surveyed 200 Gloucestershire family businesses this October 2025, as part of a wider survey of 2,000 UK family business owners, CEOs and managing directors – 40 per cent say they risk closure before the next general election in 2029 and one in 10 fear they might not last the next 12 months, with 89 per cent of those surveyed saying they were worried about further tax hikes in the upcoming Autumn Budget.
75 per cent of those surveyed said that the speculated VAT changes could cost them up to £100,000 a year – with 47 per cent planning to pass those costs on to consumers; one in 10 planning to cut back on staff and wages; and 23 per cent stopping investment or expansion plans for the time being.
A third of family businesses surveyed are already making redundancies and a fifth plan on putting a freeze on hiring; and 20 per cent are considering selling, closing their business or moving abroad if more tax hikes are announced.
WSP said that family businesses' biggest concerns ahead of the Autumn Statement are the changes to Business Relief (BR) and VAT.
Changes to inheritance tax are also a big concern for 55 per cent of those surveyed, with 14 per cent saying they would pause passing businesses on to the next generation.
Commercial director at WSP Solicitors, Peter Mardon, said: 'The impact of last year’s budget should come as no surprise, businesses of all shapes and sizes are having to make tough decisions around restructuring, staffing, investment and innovation – it’s a tightrope they have been walking for a number of years against the backdrop of a stagnating economy and cost-of-living crisis.
'What our data highlights though is how thin a rope many local family businesses are treading. What may seem like small percentage point changes in taxation, when this is mixed with major policy reform, the knock-on effect on a company’s profitability – and if they can even keep the lights on – is major.
'What is perhaps more concerning than the shorter-term pivoting is their longer-term plans. Many are pausing and cancelling plans to expand, others are suggesting earlier exits and some, including 24 per cent of the Gloucestershire-based business owners, managing directors and chief executives we interviewed, are looking to leave the country all together – taking with them the backbone of country’s entrepreneurialism and innovation.
'It’s deeply worrying that, against the current economic backdrop, confidence is low and so many are now at risk of closing or leaving the UK altogether, taking with them not just jobs, but the region and country’s future success.'
CEO of Gloucester Chamber of Commerce, Luke Lutman, added: 'Small and family businesses feel these challenges the most, with limited resources and ability to absorb the rising costs due to small margins and limited economies of scale.
'The loss of employment may be the most concerning issue we face, with knock on effects for standard of living for workers, as well as reducing their purchasing power.
'Small and family businesses are concerned what the budget will bring and what extra they may be asked to give to support the economy, or if they’ll be asked to increase staff wages once again. As such, businesses have put the brakes on any plans to expand or take risks. This has strangled the UK economy with businesses returning to survival mode.
'For the economy to flourish businesses need to
be confident in moving forward, to plan to grow, they need to believe that
better times will come and importantly be in a position to make the most of it.
For this to happen, inflation needs to return to a manageable rate,
and stabilise, to stop costs going up. The government needs to look
elsewhere to fill the holes in the public finances.'
