'Labour will torpedo my firm': One of Britain's OLDEST family businesses says inheritance tax plans could destroy his finances in 'blink of an eye' after 250 years of trading
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One of Britain's oldest surviving family businesses claims it could face ruin after Labour's budget 'torpedoed' its operating model. Jim Rankin, a sixth-generation owner of Rankin Brothers & Sons, a cork manufacturer founded in 1774, was blindsided by Rachel Reeves proposals, which he slams for 'running completely contrary to the government's ambitions for growth'.
![[William Rankin, who founded Rankin Bros & Sons in 1774 (left) and John Rankin, Jim’s great, great Uncle (right)]](https://i.dailymail.co.uk/1s/2024/12/20/14/93355391-14204939-image-m-3_1734704976287.jpg)
Rankin, who is also the chairman of the Cork Industry Federation, detailed to MailOnline how the latest changes to employer National Insurance (NI) contributions and adjustments to inheritance tax will directly impact their cash flow, the affordability of human resources, and succession planning.
![[Rankin Brothers & Sons was founded in 1774, at this time, the cork was shipped from Portugal to Scotland in the form of sheets, which were then cut into strips, then squares using special knives before finally being fashioned into cork stoppers]](https://i.dailymail.co.uk/1s/2024/12/19/09/93305325-14204939-image-a-28_1734600951629.jpg)
He's blunt in his criticism: 'The policies the government is putting forward run completely contrary to their own aims. How can they claim to be fostering growth when they're slapping taxes on businesses that are already struggling?'. Business Property Relief (BPR) has up to this point allowed individuals to transfer trading businesses to the next generation free of tax, allowing family-owned businesses to carry on from generation to generation, but from 2026 all companies valued over £1million will be saddled with a 20 per cent inheritance tax when passed on to the next generation.
![[The new Rankin Cork Factory on the banks of the Tagus River in 1935 after old factory was destroyed by fire]](https://i.dailymail.co.uk/1s/2024/12/19/09/93306607-14204939-image-a-33_1734601137077.jpg)
'This change could seriously damage the future of family businesses like ours,' Rankin explains. 'We've been around for over 250 years, and part of that longevity is thanks to our careful succession planning. But these new policies mean that we're going to have to reimagine everything. It's going to force us to make decisions we never thought we'd have to make.'.
![[Cork sailing down the Tagus River in Portugal in the 19th century]](https://i.dailymail.co.uk/1s/2024/12/19/09/93305247-14204939-image-m-32_1734600978060.jpg)
