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Agriland
5 days ago
- Business
- Agriland
More backlash to publication of UK draft inheritance tax policy
The CLA has strongly criticised the UK government's impact assessment of changes to inheritance tax published this week along with the draft legislation of the policy. The government has claimed capping vital inheritance tax reliefs for farmers and family businesses will not have "any significant macroeconomic impacts". The reforms are due to come into force in April 2026, with the government arguing it "is not expected to have a material impact on food security" and "would not be expected to impact the UK's ability to source imports from international markets". The Country Land and Business Association (CLA) has argued that there will be drastic consequences for landowners, and has offered an alternative via the 'clawback' mechanism. CLA president Victoria Vyvyan said: 'This government is incapable of listening. The ending of vital inheritance tax reliefs will crush farming and family businesses, but the Treasury remains deaf, blind and indifferent to the damage to the economy. 'The CLA has made clear, and costed, the consequences of this ideological folly; the loss of jobs, the reduction in GVA [gross value added]. "Together the industry has offered a sensible alternative via the 'clawback' mechanism. The Treasury has given no reason for failing to consider an alternative. 'This is not an impact assessment; it reads like an amateur note from an arrogant government setting and marking its own homework and simply not understanding businesses and food security," she added. The CLA claimed that the new measures are a tax burden on businesses which were delivered without consultation and with little engagement. "Farmers and family businesses are the backbone of the economy and deserve to be heard by a government that seems hell-bent on pressing ahead, indifferent to the slow but inevitable train crash," Vyvyan added. Meanwhile, Upper Bann MP Carla Lockhart said she is "outraged" following this week's unveiling of the draft legislation, which includes measures to reform Agricultural Property Relief (APR) and Business Property Relief (BPR). She said: 'The Labour government is not listening to the electorate. The chancellor outlined her intentions in the autumn budget, and from the outset I have been strongly opposed to the proposals aimed at axing historical APR and BPR. 'Existing legislation was introduced by a previous Labour government to protect family businesses during periods of national economic turmoil. "The current Labour government wants to levy a 20% 'death tax' on farm business assets over the £1 million threshold," she said. Carla Lockhart MP The MP claimed that the government and Labour Party chancellor have set themselves on a "collision course" to destroy family farms in the UK. 'Chancellor Rachel Reeves is etching her name in the history books for all the wrong reasons, creating a lasting legacy that will long out-live the current Labour leadership," Lockhart said. 'The Finance Bill presents another opportunity for the government to step-back and rethink its draft tax clauses." The Upper Bann MP has stated that the UK economy is struggling and claimed that the chancellor is willing to sacrifice the country's £48 billion agri-food sector which provides employment for over four million people. 'Sir Keir Starmer and the chancellor are ignoring legitimate concerns and refusing to participate in roundtable talks," Lockhart continued. "They cannot continue to dismiss genuine calls for a more balanced and practical way forward.' The DUP Agriculture, Environment and Rural Affairs spokesperson, continued: 'The evidence is overwhelming with numerous experts confirming that the government's figures are mis-calculated. 'The £1 million threshold is too low, especially when the value of farmland, sheds, livestock etc is taken into account. Small farms in Northern Ireland can easily exceed that figure. 'For years farmers have been encouraged to modernise, diversify and invest to expand their businesses, but now they are being penalised unfairly by this vindictive 'tax grab', a move which will destroy generations of family farms," she added. Lockhart is also supportive of a 'clawback' mechanism designed to increase Treasury revenue, while protecting working family farms.
Business News Wales
23-07-2025
- Business
- Business News Wales
Prepare Now for this Generational Shift in Rural Business Planning
In keeping with a now-familiar pattern of sudden and short-sighted announcements, the UK Government has published draft legislation confirming its planned reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR). First proposed in the Autumn 2024 Budget, these changes will see relief fall from 100% to 50% on any qualifying value above £1 million, effectively opening up farming families and diversified rural businesses to a level of inheritance tax exposure unseen for generations. And let's be clear, a £1 million threshold is all but meaningless in the context of modern farming. The capital required to operate even a modestly sized agricultural business far exceeds that figure. This is not a tax on excess; it is a tax on resilience, on succession, and ultimately, on viability. Many had hoped the Government would reconsider. As we saw with winter fuel payments and disability benefits, it has proved willing to change course under pressure. Rural communities were right to expect the same recognition for the essential contribution they make to national life – securing our food supply, improving public health, sequestering carbon and reversing biodiversity loss. These aren't peripheral goals, but foundational to the UK's ability to withstand and adapt to global pressures and the existential threats that we face today. Our call in October 2024 was that Ministers would grasp the scale of these implications ahead of the reforms taking effect in April 2026, and use the time to deliver a more coherent policy framework – one that supported the farm businesses at the heart of delivering solutions to so many of society's big issues, provide investors with confidence and ensure that land managers were equipped to meet the multiple, and often competing, demands of food production, climate action, environmental enhancement and community value. This publication suggests otherwise. The protests seen across the UK – tractor convoys in Westminster and widespread public support – made it clear that this was not a niche concern. They helped the country pause and reflect on the vital role our farmers play. Unfortunately, that message seems to have fallen on deaf ears. We do not underestimate the Government's task in balancing the books. But it is particularly surprising to see the lack of response to the business community, which has made plain the impact on jobs and the broader consequences of this policy. The reality is that BPR, not APR, is the true time bomb here. That Ministers have ignored the wider business lobby, at a time when they are also championing growth and innovation, is a contradiction they have yet to reconcile. These were, after all, Labour-originated reliefs, introduced during periods of national economic stress to help family businesses underpin the recovery. It is disheartening to see that history forgotten. The impact will be uneven but serious. Long-standing family businesses, encouraged to diversify, to modernise, to innovate and lead on environmental delivery, now face a triple bind: higher tax, reduced support and rising operational pressure. And while tenant farmers will not face inheritance tax on land they farm, they will be hit by the changes to BPR and pensions and the knock-on effects on landlords and future tenancies cannot be ignored. At a time when the sector is already struggling, due to rising costs, labour shortages, and policy volatility this legislation risks being the final straw for some. Looking forward, the timeline for action is narrowing. While we will continue to advocate for a more balanced and supportive approach, landowners must now focus on preparation. That means understanding the value of their holdings and financial implications of the tax charge, stress-testing succession plans and the business restructuring that may be necessary as part of these, assessing practical options, such as the use of conditional exemption and lifetime gifts, reviewing trust arrangements, and understanding how life insurance might help. While this may prove to be the biggest generational shift in rural business planning for decades, there are options, which Knight Frank is supporting clients to navigate. For those not already focused on this issue now is the time to act. Being prepared for what is coming is essential.
Barnama
23-06-2025
- Business
- Barnama
- Social Protection Programmes Key To Poverty Reduction
Opinions on topical issues from thought leaders, columnists and editors. However, the effectiveness and breadth of these initiatives are called into question as rising living expenses continue to exert pressure across all income brackets, including the M40. Malaysia has stepped up efforts to reduce poverty in recent years through targeted social protection programmes, particularly those focused on the B40 income group. Targeted assistance for the Bottom 40 per cent (B40) income group is the central tenet of Malaysia's approach to reducing poverty. A recent report from the DOSM states that the average income of the B40 has increased by only 1.5 per cent per year, which is not enough to keep up with inflation. Many people still have limited purchasing power as a result, particularly given the sharp increase in the price of food and housing. The Department of Statistics Malaysia (DOSM) statistics, however, show that although these programmes provide short-term respite, they cannot significantly improve families' long-term economic standing. Programmes like Bantuan Sara Hidup (BSH), Bantuan Prihatin Rakyat (BPR), and the more recent measures unveiled in Budget 2025 aim to help low-income households cope with the rising cost of living. These initiatives provide needy families short-term financial relief through subsidies, housing assistance, and cash help. As such, Prime Minister Datuk Seri Anwar Ibrahim has underlined the government's will to address these problems, promising to lower costs and increase accessibility to necessities to ease financial burdens. Critics contend that monetary distributions could not alleviate underlying economic inequities despite these guarantees. "Malaysia's B40 will continue to face an uphill struggle against poverty without structural reforms in education, employment, and wage policies," one economist noted. Global social protection models: achievements and insights for Malaysia Various social protection regimes worldwide have successfully reduced poverty, particularly when multifaceted and sustainable approaches are used. One programme generally commended for decreasing severe poverty is Brazil's Bolsa Família, which goes beyond cash transfers by requiring families to comply with health and education standards. This strategy has broken the cycle of intergenerational poverty, which has had a profoundly positive effect. Another practical example is the Basic Livelihood Security Programme (BLSP) in South Korea, which combines financial help with housing assistance, skill development, and job support. By linking financial aid to social services and job training, the BLSP has decreased poverty rates and enhanced recipients' capacity to find steady work, encouraging long-term independence. South Korea's strategy emphasises the necessity of a comprehensive social safety net that fosters employment and skill development. Similarly, the European Union's "Active Inclusion" approach supports beneficiaries by combining labour market reforms with social protection, offering financial assistance and work placements. Malaysian approach gaps: going beyond financial aid Although Malaysia's B40 initiatives offer much-needed financial assistance, they don't have the same cohesive structure as nations like Brazil and South Korea. Due to the lack of a multifaceted strategy, B40 beneficiaries' ability to achieve economic independence is restricted. According to a local economist, "Despite its usefulness, monetary aid frequently results in dependency if employment-based and educational initiatives do not accompany it." In addition to providing help, we must empower beneficiaries. The main drawback is that Malaysia's social security system primarily uses short-term financial assistance to combat poverty rather than focusing on long-term empowerment initiatives. On the other hand, effective schemes, such as the BLSP in South Korea, strongly emphasise developing human capital, providing work opportunities and skill training to recipients as part of their social benefits. Another gap is the availability of affordable housing. Although Malaysian authorities have started projects to provide inexpensive housing, they are frequently focused in metropolitan areas where demand outpaces supply, underserving rural and peri-urban locations. Future directions for Malaysia: establishing a comprehensive social safety system Motivated by South Korea's BLSP and Brazil's Bolsa Família, Malaysia might benefit from implementing a more all-encompassing strategy that incorporates job assistance and skill development to improve the efficacy of social security. Working with social services and career development programmes might pave the way for the B40 to become resilient and financially independent. Furthermore, prioritising accessible education and universal healthcare will guarantee that fundamental necessities are satisfied, lessening the financial burden on low-income households. These steps would align with international best practices, calling governments to establish safety nets that do more than alleviate acute misery. Finally, increasing social protection in underprivileged regions might improve living conditions for low-income people in rural and urban areas, addressing regional disparity concerns. When Malaysia prepares for Budget 2026, adding these components might turn the B40 support system into a cornerstone for long-term, sustainable poverty alleviation. In conclusion: using holistic reform to close the gap A move towards a more integrated strategy might enhance results for the B40 and beyond as Malaysia's social protection programmes continue to develop. As demonstrated by international examples, providing routes to education, work, and self-sufficiency is necessary to reduce poverty effectively. If these all-inclusive models are emulated, all Malaysians might gain from the country's progress, which could help Malaysia close the gap in economic inequality. -- BERNAMA Datin Sri Prof Dr Suhaiza Hanim Dato Mohamad Zailani (shmz@ is the Director of the Ungku Aziz Centre for Development Studies, Universiti Malaya.
7NEWS
23-06-2025
- Business
- 7NEWS
Stamp price rise locked in: Aussies to pay more as letter volumes plunge to 1950s levels
Australia Post has confirmed stamp prices will rise after the nation's postal watchdog gave the green light to a 20-cent hike for sending a standard letter. The Australian Competition and Consumer Commission (ACCC) issued its final view, stating it 'has no objection' to the price rise, paving the way for the Basic Postage Rate (BPR) to increase from $1.50 to $1.70 on July 17, 2025. 'The BPR increase will help us address the rising cost of delivering letters,' Australia Post said in a statement. The price increase follows a 10.6 per cent drop in letter volumes during the first half of 2025 alone, resulting in an $83.7 million loss for the postal giant's letter division, Australia Post confirmed. Once a core service, personal mail has been all but replaced by digital communication, with around 97 per cent of all letters now sent by government or business entities. The average household receives just two letters per week, and letter volumes are projected to halve again within five years, Australia Post said. 'Letter volumes are now at levels not seen since the 1950s,' Australia Post noted. Despite these trends, the postal service is required to maintain a national delivery network. More than 200,000 new delivery points are added every year, even as demand dwindles, Australia Post said. What it means for Australians For most Australians, the impact will be small. Households typically purchase just five to six full-rate stamps per year, meaning the increase will cost an extra $1.20 annually on average. To soften the blow amid cost-of-living pressures, concession and seasonal greeting stamps will remain unchanged at 60 and 65 cents, respectively. Charities will also retain access to discounted rates. Self-funded enterprise under pressure Australia Post stressed it remains a self-funded government business enterprise, meaning it receives no direct government funding and must cover its costs through revenue alone. 'We are focused on addressing our financial challenges in a responsible way, so we can continue delivering essential services to communities across Australia,' the postal service said. The ACCC, while giving the tick of approval to the July increase, noted that even with the 20-cent rise, Australia Post is unlikely to fully recover its losses in the letters business. The Commission has urged the organisation to improve its forecasting, cost modelling, and regulatory reporting in future pricing proposals, citing its monopoly over reserved letter services and the need for financial discipline in the absence of market competition.
Focus Malaysia
20-06-2025
- Business
- Focus Malaysia
Social protection programmes key to poverty reduction
MALAYSIA has stepped up efforts to reduce poverty in recent years through targeted social protection programmes, particularly those aimed at the B40 income category. However, the effectiveness and breadth of these programmes are called into question since growing living expenses continue to strain all income levels, including M40. The B40 in Malaysia's social protection environment Targeted assistance for the Bottom 40% (B40) income group is the central tenet of Malaysia's approach to reducing poverty. Programmes like Bantuan Sara Hidup (BSH), Bantuan Prihatin Rakyat (BPR), and the more recent measures unveiled in Budget 2025 aim to help low-income households cope with the rising cost of living. These initiatives provide needy families short-term financial relief through subsidies, housing assistance and cash help. The Department of Statistics Malaysia (DOSM) statistics, however, show that although these programmes provide short-term respite, they cannot significantly improve families' long-term economic standing. A recent report from DOSM states that the average income of B40 has increased by only 1.5% per year, which is not enough to keep up with inflation. Many people still have limited purchasing power as a result, particularly given the sharp increase in the price of food and housing. As such, Prime Minister Datuk Seri Anwar Ibrahim has underlined the government's will to address these problems, promising to lower costs and increase accessibility to necessities to ease financial burdens. Critics contend that monetary distributions could not alleviate underlying economic inequities despite these guarantees. 'Malaysia's B40 will continue to face an uphill struggle against poverty without structural reforms in education, employment, and wage policies,' one economist noted. Global social protection models: Achievements and insights for Malaysia Various social protection regimes worldwide have successfully reduced poverty, particularly when multifaceted and sustainable approaches are used. One programme generally commended for decreasing severe poverty is Brazil's Bolsa Família, which goes beyond cash transfers by requiring families to comply with health and education standards. This strategy has broken the cycle of inter-generational poverty, which has had a profoundly positive effect. Another practical example is the Basic Livelihood Security Program (BLSP) in South Korea, which combines financial help with housing assistance, skill development, and job support. By linking financial aid to social services and job training, the BLSP has decreased poverty rates and enhanced recipients' capacity to find steady work, encouraging long-term independence. South Korea's strategy emphasises the necessity of a comprehensive social safety net that fosters employment and skill development. Similarly, the European Union's 'Active Inclusion' approach supports beneficiaries by combining labour market reforms with social protection, offering financial assistance and work placements. Malaysian approach gaps: Going beyond financial aid Though Malaysia's B40 initiatives offer much-needed financial assistance, they don't have the same cohesive structure as nations like Brazil and South Korea. Due to the lack of a multifaceted strategy, B40 beneficiaries' ability to achieve economic independence is restricted. The main drawback is that Malaysia's social security system primarily uses short-term financial assistance to combat poverty rather than focusing on long-term empowerment initiatives. On the other hand, effective schemes, such as the BLSP in South Korea, strongly emphasise developing human capital, providing work opportunities and skill training to recipients as part of their social benefits. Another gap is the availability of affordable housing. Although Malaysian authorities have started projects to provide inexpensive housing, they are frequently focused in metropolitan areas where demand outpaces supply, underserving rural and peri-urban locations. Future directions for Malaysia: Establishing a Comprehensive social safety system Motivated by South Kore's BLSP and Brazil's Bolsa Família, Malaysia might benefit from implementing a more all-encompassing strategy that incorporates job assistance and skill development to improve the efficacy of social security. Working with social services and career development programmes might pave the way for the B40 to become resilient and financially independent. Furthermore, prioritising accessible education and universal healthcare will guarantee that fundamental necessities are satisfied, lessening the financial burden on low-income households. These steps would align with international best practices, calling governments to establish safety nets that do more than alleviate acute misery. Finally, increasing social protection in underprivileged regions might improve living conditions for low-income people in rural and urban areas, addressing regional disparity concerns. When Malaysia prepares for Budget 2025, adding these components might turn the B40 support system into a cornerstone for long-term, sustainable poverty alleviation. Using holistic reform to close the gap A move towards a more integrated strategy might enhance results for the B40 and beyond as Malaysia's social protection programmes continue to develop. As demonstrated by international examples, providing routes to education, work, and self-sufficiency is necessary to reduce poverty effectively. If these all-inclusive models are emulated, all Malaysians might gain from the country's progress, which could help Malaysia close the gap in economic inequality. ‒ June 20, 2025 The author is the Director of the Ungku Aziz Centre for Development Studies, Universiti Malaya. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Bernama
