Chesterfield entrepreneur Steve Perez buys £6m life insurance – to protect his business ahead of inheritance tax changes

Steve Perez, 68, the founder and chairman of Global Brands and Casa Hotels Group, has decided to buy an expensive life insurance to protect his businesses.

This comes after Chancellor of the Exchequer Rachel Reeves proposed changes to inheritance tax – which are set to restrict the inheritance tax relief available for agricultural and business property from April 2026.

Previously, business properties could be passed down without an inheritance tax, but under the new rules properties with a value of over £1m will be subject to a 20 percent tax.

This means that the family of Steve Perez would need to pay around £7 million to inherit Global Brands, with the net assets worth about £35 million.

The insurance policy which Mr Perez has decided to buy would see £6 million paid out to his family should he die during the next 10 years.

Steve Perez said: “Finding £7 million in tax would be unaffordable for the business, which would mean it would either have to be sold or broken up.

“If the business was sold it would inevitably be taken over by a big PLC, more than likely outside of Derbyshire and quite possibly to a company outside the UK altogether. It would cease to be a Derbyshire based business.

"Selling the business would give a great amount of insecurity to my 400 employees in Derbyshire. Following the budget, a number of them expressed concerns about the future. The insurance is a way to protect my business and my employees going forward.”

Established in 1997, Global Brands has grown into one of the leading firms in the drinks industry, creating and distributing a wide range of household names – including VK and Hooch. Casa Hotel Group includes Casa Hotel at Lockoford Lane in Chesterfield, and the Peak Edge Hotel at Stone Edge.

Mr Perez said: “Over the years I’ve had dozens of offers to sell my business to large PLCs. I haven't done that because I've always been passionate about having the local business here in Derbyshire.

"All my business investments are in North East Derbyshire – the drinks business, two hotels and the farm that supplies my hotels.

"I believe very strongly in the local economy and supporting Derbyshire businesses. I want my business to remain there beyond me for generations to come. In order to preserve it in a long term as a local family business I have had to make this investment.”

He added: "I’m 68 years old and the insurance premiums are quite high. The chancellor said that this was a budget for growth, but it is a complete opposite to growth. It means that businesses such as mine have to cut back on our growth plans and invest in insurance to protect the future of our employees.”

Mr Perez met with North East Derbyshire MP Louise Jones and Chesterfield MP Toby Perkins to discuss the new inheritance tax policy and was disappointed that the MPs were not able to vote against the proposals.

North East Derbyshire MP Louise Jones said: “This Labour Government is committed to economic growth and fixing our broken public services. Since July 2024 we have seen an increase in real wage growth, mortgage rates have fallen, and the NHS waitlists have fallen for four months in a row.

“We must be honest with dealing with the poor state of the nation’s finances that we were left by the previous Government meaning we have to prioritise fixing the foundations of our economy and improving our public services.

“I have frequently met with local businesses in North East Derbyshire and will continue to do so in my role."

Chesterfield MP Toby Perkins said: “The new Labour government inherited crumbling public services as well as a known £121 Billion budget deficit in 23-24 and £22 Billion of unexpected additional in-year deficit in 24-25.

“In these very tough circumstances the chancellor, in her very first budget, provided an additional £25 Billion to our National Health Service and already waiting times are starting to fall and an additional 2 million appointments have been created. The contributions to that budget of successful businesses and business owners is hugely appreciated.

"The additional schools, health and transport funding simply would not have been possible without the alterations to National Insurance and Inheritance tax that the Chancellor made.

“Entrepreneurs like Steve who have taken risks to build their businesses and pay tax revenue and employ people are crucial to the nation and should absolutely be listened to as we want the UK to remain an attractive place to invest. But those businesses do also benefit when a Labour government invests in our schools, roads and health services as they will if consumers have more disposable income due to the rise in the National minimum wage.

“I support the principle of inheritance tax, family members receiving millions of pounds in cash or assets sharing some of that wealth with the nation in which it was earnt, is a principle that I support.

“The issue of passing on family businesses and the tax liability on their family is a specific one and I hear the specific issues that this causes. I will continue encouraging the government to think about how it balances the desire to encourage investment with the need to fund public services.

"It is worth saying that the changes to the inheritance tax regime still reduce the inheritance tax liability by 50% compared to cash inheritances.

“The government is taking many steps to drive growth from reducing trade barriers with Europe, to reducing blockages in the planning system, reducing the burden of Business rates on the high street and increasing flexibility in our apprenticeship regime. All of these and many more will help businesses to be successful in the future.

"We will continue to engage with businesses around any changes they feel are contrary to the government’s stated desire to drive growth and look forward to dialogue with Steve and other businesses going forward.”

Press Office for the Exchequer Secretary to the Treasury did not wish to comment.