Discussing the Impact of the Budget in Parliament
Earlier this month, members of Historic Houses attended a Parliamentary Roundtable hosted by Shadow Heritage Minister Saqib Bhatti MP and Lord Parkinson, former Heritage Minister. The meeting provided a vital opportunity for politicians to hear directly from historic house owners about the significant challenges posed by the Autumn Budget, particularly changes to inheritance tax (IHT), employment costs, and wider financial pressures on rural businesses.
The discussion made clear that the IHT changes, including reductions in Business Property Relief (BPR) and Agricultural Property Relief (APR), pose an existential threat to historic house businesses. Many attendees warned that the reforms could force house sales as successors struggle to meet new capital tax demands. Such sales would likely lead to closures of houses that currently serve as tourist attractions, educational centres, and commercial venues, resulting in a loss of public access, local employment, and economic activity.
Employment costs were another major concern. The combination of increases in National Insurance contributions and the National Minimum Wage (NMW) will make it more difficult for historic houses to employ staff, particularly seasonal workers. One attendee noted that hiring young workers, particularly 16-year-olds, would no longer be financially viable, despite the training opportunities such roles provide. Others highlighted that historic houses are often the largest employers in their rural communities, meaning any rise in employment costs has a knock-on effect on the local economy.
Speaking in the House of Lords following the meeting, Lord Parkinson emphasised the scale of the issue, stating:
“These are small businesses, often families, which run houses for the enjoyment of everybody, supporting some 32,000 jobs and 330 apprenticeships and generating more than £1.3 billion for the UK economy. They are often the biggest employers in their rural areas, and decisions that make employment more expensive have a knock-on effect not just on their business but on the opportunities of young people in these often isolated areas.”
Beyond financial concerns, members also discussed the broader implications for heritage tourism. Historic houses are a key draw for international visitors, and any decline in their number would have consequences for tourism revenue, education, and cultural preservation. Some attendees suggested that the Government’s policy changes may not generate as much tax revenue as expected and could even reduce the overall tax take by discouraging investment and forcing businesses to close.
While the politicians in attendance expressed sympathy and a willingness to raise these concerns with colleagues, Historic Houses members recognised that further engagement with policymakers is essential. Saqib Bhatti MP encouraged house owners to continue making their voices heard, suggesting that letter-writing campaigns, parliamentary debates, and MP visits could help ensure these issues receive the attention they deserve.
If you have concerns about the Budget, we strongly encourage you to engage with your MP. Ensuring that policymakers understand the real-world impact of these decisions is crucial to securing a more sustainable future for historic house businesses. For further information on how to get involved, there are resources on the Lobbying Toolkit.
With English Tourism Week (14–23 March) and Scottish Tourism Month (March) fast approaching, inviting MPs to visit Historic Houses properties offers a valuable opportunity for direct conversations about these policy changes. You can download a template letter for contacting your MP or MSP here.
