The recent Budget changes pose an 'existential threat' to the future of a seventh-generation pub and brewing giant, according to its owner.
William Lees-Jones, who owns and operates Manchester-based JW Lees, a real ale producer since 1828, has expressed concern that he may not be able to pass on his business to the next generation, as reported by .
In a LinkedIn post, the managing director warned that his family would lack the necessary cash or liquid assets to cover a hefty inheritance tax bill in the event of his death. Consequently, they might have to sell parts or even the entire business, potentially to a foreign buyer with no interest in their employees, community, local jobs, or growth.
READ MORE: {}
Lees-Jones fears that if sold to a large international brewer or pub company, JW Lees could quickly shut down, putting jobs and the brewery's existence at risk. JW Lees is a seventh-generation family business employing over 1,525 people and operating 48 managed pubs, inns, and hotels while also leasing out a further 100 pubs.
In its latest financial year, ending 31 March 2024, JW Lees reported a revenue of £96.8m, a nine per cent increase, and a pre-tax profit surge of 104 per cent to £7.1m. 'It's not too late to make some changes,' Lees-Jones concluded.
‘It’s not to late to make some changes’
On LinkedIn, Lees-Jones shared the sentiment: 'We do not inherit the business from our parents but borrow it from our children'. He believes this principle is "the driver behind all great family businesses and something that has not been understood by the Government in its Budget."
The pub magnate further commented: "A lot is now being written in the media about the changes to Agricultural Property Relief and Business Property Relief and what they will do to 海角视频 farming and private business."
He expressed concern that "The reality is that people are becoming entrenched to pre-existing positions rather than consulting and making this policy work, even if the policy is only forecast to bring in an anticipated £500m per annum or 1.21 per cent of the total £41.170bn impact of the recent budget."
Most Read
He added, "It's not too late to make some changes and listening sounds better than U-turning and there's never been any downside to being a good listener."
Budget changes ‘represent a very real threat to the very existence of JW Lees’
Lees-Jones stated: "We're not happy but will reluctantly 'suck it up' and pay the increased National Living Wage and increased Employers National Insurance Contributions in order to pay for our vital public services, but the changes in Business Property Relief [BPR] represent a very real threat to the very existence of family businesses like JW Lees and this is worth fighting for."
He continued, "So I have written to our MPs saying for almost 50 years since it was introduced by Jim Callaghan in 1976 BPR has given us the confidence and certainty to invest our savings in the business, employ people, and reinvest our profits back into the business and our community."
"BPR has allowed our business to grow and to stay within the family and this has in turn allowed us to confidently plans for the future and know we can pass on the ownership of our business to the next generation without them facing punitive taxes, which no other model of business ownership is subject to; in fact my son Louis joined the business last May to continue the family legacy and take it into the seventh generation of our founder John Lees who started the business in 1828. BPR has allowed us to compete and grow our business on a level playing field with our non-family-owned competitors."
He concluded, "The changes announced in the Budget end all that and we are now facing the very real prospect that we will never be able to hand on the running of my business to our children."
"In the event of my death, members of my family will simply not have the cash or liquid assets available to cover an enormous inheritance tax bill and that means that they will need to sell parts, or all of the business, potentially to an overseas buyer who does not have any interest in our people, our community, local jobs, or growth."
"JW Lees would very quickly be closed down if sold to a large international brewer or pub company and all of those jobs and the very existence of the brewery would be at threat."