Family businesses remain confident about the immediate future, but confidence declines sharply as owners consider the next generation. While nearly two-thirds of owners are very confident their business will remain family-owned over the next two years, fewer than a quarter say the same of the next ten years.

Taken together, the findings reveal a sector that remains resilient today but is increasingly uncertain about tomorrow. Rising costs, succession challenges and concerns around future inheritance tax liabilities are all contributing to a growing confidence gap between the short and long term.

1. Family businesses are confident in the short term, but far less certain about the next generation

While 63% of owners 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.

2. Rising costs are the biggest immediate challenge

71% cite rising business costs, ahead of the political and economic climate (57%) and wider business taxation (44%).

3. Succession can no longer be taken for granted

One-third of owners believe a lack of a suitable or willing successor could ultimately threaten family ownership.

4. Tax is changing behaviour

More than one in five owners would consider selling their business following recent inheritance tax changes, while others are bringing succession plans forward.

5. Strong businesses today, uncertain ownership tomorrow

The findings suggest that rising costs, succession uncertainty and concern over future inheritance tax liabilities are combining to make long-term family ownership significantly harder to plan for.