The Confederation of Passenger Transport (CPT) has warned that the º£½ÇÊÓƵ's family-run coach companies are struggling with the government's changes to inheritance tax, forcing many to urgently reassess their investment strategies.
According to a CPT survey of 375 firms, 71% of coach companies said they would be affected by the inheritance tax changes, with 46% warning that the revamp threatened their long-term survival.
The Autumn Budget, announced by Rachel Reeves, introduced changes meaning that for the first time, family businesses with assets over £1m will be subject to inheritance tax.
Reeves' inheritance tax alterations have already sparked outrage among British farmers, with thousands protesting in London this week against the reform. However, the CPT is cautioning that coach companies will also feel the impact of the overhaul.
While there are a few national coach companies, approximately eight out of ten small and medium-sized coach operators in Britain are family-owned, as reported by .
The coach industry is highly capital intensive, with most operators owning assets above the new threshold. Costs for land for parking, garages and the vehicles themselves can exceed £300,000, the CPT pointed out.
The sector, which employs 81,000 people, is also recovering from the pandemic and companies are currently being compelled to spend millions of pounds on transitioning to low-emission or electric vehicles, the CPT added.
Alison Edwards, director of policy and external relations at the CPT, highlighted: "Many of these operators are long-established local businesses which have been painstakingly built up over several generations. They are run by entrepreneurial families with much of their net worth tied up in garages,".
She further criticised the government's approach, stating: "It is perplexing that the government is discouraging investment with the prospect of hefty and unaffordable inheritance tax bills, in addition to a rise in national insurance contributions,".
Edwards also expressed her disappointment, adding: "It is disappointing that this change has been announced with so little warning or consultation, prompting members to scramble to reconsider investment plans. We will be urging the Treasury to reconsider."
The Treasury has been approached for comment.
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