A profound wave of pessimism is sweeping through the UK's family-owned enterprises, with a huge majority viewing the current economic landscape as tougher than the crisis-hit 1970s and expressing deep scepticism towards the government's growth agenda.
Overwhelming Gloom and a Nostalgic Look Back
Research commissioned by the Jobs Foundation has uncovered a dire mood among the nation's family businesses and farms at the start of the year. The survey, conducted by pollsters Whitestone Insight, quizzed more than 1,150 family business owners and farmers online between 28 November and 5 December.
The findings are stark: nearly eight in ten (78%) are pessimistic about the state of the UK economy looking ahead to 2026. Perhaps more striking is the historical comparison, with a majority rating the tax and regulatory environment of the 1970s as more favourable for business than the current climate of the 2020s.
A "Profound Disconnect" with Government
The study reveals what it calls a 'profound disconnect' between the views of the Labour Government and the business community it seeks to champion. Central to this is widespread disbelief in Chancellor Rachel Reeves' core pledge.
Two-thirds (68%) of family business owners stated they do not believe that economic growth is the number one mission of the government, despite Reeves' frequent assertions. Only a tiny minority, less than one in five (18%), said they had faith in the Chancellor's oft-repeated claim.
The response to the government's fiscal plans is equally damning. The research indicates that twenty times as many family businesses believe they will be harmed rather than benefit from the two tax-increasing Budgets delivered by Ms Reeves. Furthermore, over half (52%) agreed that the government had severed the connection between reward and effort, with fewer than a third (31%) disagreeing.
Running a Business "Steadily More Difficult"
Matthew Elliott, President of the Jobs Foundation, said the research painted a picture of a sector feeling profoundly misunderstood and unsupported. "Eighty per cent feel like the Government doesn’t understand what it is like to run a business," he noted. "And more than three-quarters think successive governments have lacked the ambition to make the UK a really great place to do business."
Andrew Hawkins, CEO of Whitestone Insight, elaborated on the challenges, stating: "Running a family enterprise in Britain has become steadily more difficult. Economic pressures have intensified, margins have tightened, and the political and regulatory environment has grown markedly less hospitable."
He described a landscape shaped by rising employment costs, complex regulation, and a tax system perceived as punitive towards long-term investment and entrepreneurship. Yet, Hawkins emphasised, "such businesses are truly the lifeblood of our economy and sustainers of our communities."
The survey ultimately suggests that for most owners, the drive is not vast wealth but core stability and contribution. The majority are motivated by a desire to create something that improves others' lives and to provide for their families—a mission they feel is increasingly hampered by the current economic and policy framework.
