In recent months, much has been said about the ‘family farm tax’ – Labour’s decision to slash Agricultural Property Relief (APR) from 100 percent to a capped £1 million allowance. Anything over that will now get only 50 percent relief, meaning a 20 percent tax bill on the rest.

It’s a move that will force many farms, especially here in our constituency where land values are high, to sell off assets or take on heavy debt just to pass the business to the next generation.

What’s barely been discussed is that Labour have done the same to Business Property Relief (BPR). This hits family-owned businesses of all kinds – from builders’ yards to garden centres – and it will land just as hard as the APR cut. From April 2026, BPR will be capped at £1 million for 100 percent relief, with only 50 percent beyond that.

That might sound generous, but many family firms are asset-rich and cash-poor. A garden centre with freehold land, a construction firm with its own yard, or a hotel in our towns can quickly exceed that threshold.

Here in our community, places like independent shops in Farnham and Haslemere, and family firms in the rural areas around Bordon and Liphook are exactly the kind of enterprises that could be caught out. They may have valuable assets, but not the cash to pay a sudden tax bill without taking on debt or selling part of the business.

When a family business is lost, the damage goes far beyond the balance sheet. These businesses invest here in the community. They offer stability and opportunity to local people, often employing several generations of the same family. They create a sense of belonging for workers, treat staff as more than numbers, and build loyalty that big companies struggle to match. They are trusted local brands – part of the fabric of our towns and villages – and they innovate to meet local needs, not to please shareholders in distant cities.

We all know the household names of family firms that support local events and sponsorships; if they are forced to close or sell up, that support will vanish too.

By contrast, large corporations have the resources to absorb this kind of change. Many aren’t even affected, either because they fall outside BPR altogether or because their complex structures allow them to manage the impact. They can ride out policy shifts, while small family firms face existential threats.

Nationally, Family Business UK warns that over 200,000 jobs could be at risk and £15 billion wiped from the economy. Locally, that could mean fewer apprenticeships, fewer sponsorships, and a hollowing-out of our high streets.

Labour’s message is clear: work hard, build something for your family, and you will be penalised when you try to pass it on. That is not just unfair – it is economically destructive. Family farms and family businesses are both worth fighting for. This tax raid puts them in jeopardy.