Pubs boss: ‘We cannot allow the government to destroy family companies’
The boss of a seventh-generation pub and brewing giant has argued that “we cannot allow the government to destroy family companies” as they are the “bedrock of the UK economy”.
In a post on LinkedIn William Lees-Jones, who owns and runs Manchester-based JW Lees, which has produced real ale since 1828, reiterated his opposition to the changes to Business Property Relief (BPR) which he first voiced in the aftermath of the Budget.
On the social media site, the pubs boss agreed with the stance that the removal of BPR is “anti-competitive and is deliberately disadvantaging UK firms compared to international competitors”.
He added that companies owned overseas which operate in the UK will not be taxed with the BPR changes and the UK will be open to “onslaught from overseas companies and stifling exports”.
The pubs boss also argued that reducing BPR would “lead to a fire sale of UK family companies” and that it would be a “potential disaster”.
JW Lees is a seventh-generation family business which employs over 1,525 people. It operates 48 managed pubs, inns and hotels and also lets a further 100 pubs.
For its latest financial year, the 12 months to 31 March, 2024, JW Lees posted a revenue of £96.8m, up nine per cent, while its pre-tax profit jumped by 104 per cent to £7.1m.
‘Reducing BPR will lead to a fire sale’
In the post, Lees-Jones said: “Thank you to all of the businesses that have been in touch with me about the public stance that I have taken on Business Property Relief (BPR). It’s encouraging to people can see how important this is.
“One such business made the point that the removal of BPR is actually anti-competitive and is deliberately disadvantaging UK firms compared to international competitors both in the UK domestic market and for exports.
“Foreign owned companies operating in the UK will not be taxed with the BPR changes and this will mean that we are opening the UK to onslaught from overseas companies and stifling exports.
“Reducing BPR will lead to a fire sale of UK family companies forced to sell out to overseas competitors at knock down values.
“It’s a potential disaster and the ripple effect will be felt by suppliers and communities where family companies trade and employ people.
“We are hoping that the government will consult in the New Year with family business as promised since there are simple solutions, like ensuring that family companies really are what they claim to be and are actively run by families.
“And, of course, when companies are sold tax is paid in any case but for family companies to have to pay out dividends to pay for the inter-generational passing of shares will make those companies uncompetitive compared to listed or private equity owned enterprises.
“We cannot allow the government to destroy family companies like this since they are the bedrock of the UK economy.”