Government makes inheritance tax changes after sector highlights devastating consequences of reforms: The government has said the threshold for business property relief (BPR) will be increased from £1m to £2.5m when it is introduced in April 2026 – just months after family-run sector businesses revealed the devastating consequences that inheritance tax reforms will have. They warned changes to BPR risked forcing the sale of viable businesses, undermining generational succession, weakening rural and coastal economies, and reducing reinvestment and long-term tax receipts. A UKHospitality member survey revealed 47% of family-owned hospitality businesses expect to be directly affected, with 51% cutting back investment and a fifth anticipating being forced to sell up – and the trade body said members have been central to illustrating the real-life impacts of changes to inheritance tax. Simon Collinson, director of the 17-strong Oak Taverns, had warned that their family-run business was no longer focusing on growth, but deciding which pub they would have to sell to pay the tax bill. Paul Milsom, managing director of the three-strong Milsom Hotels, said the original policy would result in job losses, while Elyse Waddy, owner and director of The Empire Hotel, Llandudno, warned it would ultimately close, rather than pay the tax bill. UKHospitality also highlighted that, while these changes are a positive development, it remains the case that many businesses will still be facing significant inheritance tax bills and that the government should continue to engage with the sector on further solutions. Kate Nicholls, chair of UKHospitality, said: “Family-run businesses are part of what makes much of hospitality so special, with generation after generation taking on the family pub, restaurant or hotel to continue its legacy. The original changes to business property relief put all of that at risk, with businesses up and down the country suddenly facing tax bills running into tens of thousands of pounds. We have worked extensively with the Treasury and MPs across parliament to highlight the unintended consequences of this policy and the impact it could have on local communities, particularly in rural and coastal areas. I’m pleased these concerns have been heard loud and clear, and that the government has acted. This does go some way to safeguarding family-run hospitality businesses. It’s critical this engagement with the sector continues, as there is still more that can be done. I’d like to particularly thank those members that have supported our work on this issue and shared very difficult and personal stories about what the impact could be on their business and their families. Those are the stories that hit home about how devastating the changes could be and why change was so urgent.”

Propel’s sector-leading guide to the UK’s 500 largest hospitality companies returns in January, to be made free to Premium subscribers on day of publication: The Propel 500 – 2026 report will analyse the companies leading the charge in hospitality, reporting on turnover, number of sites, and key staff. The guide will also include exclusive analysis to provide a full understanding of the market’s dynamics. Mark Wingett will delve into the mergers and acquisitions shaping the future of the top 500. Tim Street dissects the UK’s rapidly-developing franchise market and, as the experiential leisure sector becomes a cornerstone of modern hospitality, Katherine Doggrell will assess the rise of deals in the sector, as well as the shifts in the hotel industry. Data expert Mark Bentley, business development director at HDI, will look at emerging growth sectors and Meaningful Vision founder Maria Vanifatova will analyse the latest trends in the quick service restaurant market. Propel 500 – 2026 will be released on Friday, 9 January at 9am and will be available free to Premium Club subscribers. The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.