Russell-Cooke has launched a new report exploring the opportunities and challenges facing family businesses in modern Britain, revealing growing uncertainty about whether many businesses will remain under family ownership in the years ahead
The Future of Family Business: Survival, succession and stewardship in modern Britain combines research from more than 500 UK family business owners, conducted in partnership with YouGov, with insights from business owners, advisers and wealth specialists. The findings highlight the pressures shaping the future of family enterprise, from succession planning and governance to taxation, reputation and long-term stewardship.
The report reveals a growing confidence gap among family business owners. While almost two-thirds (63%) are very confident their business will remain family-owned over the next two years, this falls to 38% over five years and just 24% over ten years.
Key findings
71% of family business owners identify rising business costs as one of their biggest concerns.
57% cite political and economic uncertainty.
43% highlight taxation as a significant challenge.
38% point to regulatory and compliance pressures.
One in three believe a lack of a suitable or willing successor could ultimately bring family ownership to an end.
Nearly 30% would consider selling if presented with the right acquisition offer.
More than one in five would consider selling in response to recent inheritance tax changes.
Only 45% are confident future inheritance tax liabilities could be met without selling part or all of the business.
One of the clearest messages to emerge from the research is that family businesses do not face identical challenges. The findings highlight a growing divide between smaller and larger businesses when it comes to succession planning and long-term preparedness.
Larger family businesses are generally better equipped for leadership transitions, benefiting from more formal governance structures, clearer succession plans and reduced reliance on individual family members. Smaller businesses, by contrast, are more likely to depend on informal arrangements and personal relationships, leaving them potentially more exposed when change occurs.
Planning for the future
The report finds that successful succession is becoming increasingly planned, professionalised and less automatic than in previous generations. Rising costs, economic uncertainty, changing tax rules and evolving family dynamics mean that passing a business from one generation to the next can no longer be taken for granted.
Family businesses have always demonstrated remarkable resilience, and that remains true today. What our research brings into focus is the widening gap between owners' confidence in the business itself and their confidence that it will remain under family ownership in the future. The traditional assumption that ownership will naturally pass from one generation to the next can no longer be taken for granted. Owners are operating in an environment shaped by rising costs, economic uncertainty, changing tax rules and increasingly complex family dynamics. Against that backdrop, succession is becoming one of the defining challenges facing family businesses. Successful succession is about far more than transferring wealth or shares. It requires families to prepare future leaders, align their family and business interests, and put structures in place that support informed and sometimes difficult decisions
The report concludes that the family businesses most likely to thrive over the coming decade will be those that plan early, develop future leaders, strengthen governance and address potential succession challenges before they become disputes.
Explore the report
Read The Future of Family Business: Survival, succession and stewardship in modern Britain here, or download a copy of the report to explore the findings in full and discover what family business owners and advisers believe the future holds for the sector.
If you would like to discuss succession planning, governance, reputation management, tax or wider family business challenges, please contact us to find out how we can help.
Get in touch
If you would like to speak with a member of the team you can contact our family office solicitors by email or by telephone on +44 (0)20 3826 7550.
