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Business News Wales
8 hours ago
- 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
Scotsman
20-06-2025
- Business
- Scotsman
Farmers vow to keep pressure on 'family farm tax'
Farming leaders said the inheritance tax changes have been the most emotive issue they've witnessed in their lobbying careers. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Farming unions have vowed to 'keep up the pressure' on the UK Government to revise the controversial 'family farm tax'. From next year, a 20 per cent inheritance rate is set to be levied on agricultural assets worth more than £1 million, which were previously exempt. Advertisement Hide Ad Advertisement Hide Ad The proposals, announced in last year's Autumn budget, have been described as 'draconian' and 'industry threatening' by farming unions. The plans saw tractors descend on Westminster and Holyrood and elsewhere across the UK on several occasions in protest earlier this year. Royal Highland Show takes place over four days in June and is Scotland's largest agriculture event Asked if the inheritance tax changes are likely to go ahead, National Farmer's Union Scotland (NFU Scotland) leader Andrew Connon said the organisation is still lobbying hard to fight against them. Andrew Connon, head of the National Farmers Union Scotland | NFU Scotland Speaking at the Royal Highland Show, Mr Connon said: 'We will keep the pressure on because it is so fundamentally important. 'It has been the most emotive thing I've come across in my career in the union. We will not give up the fighting. We will not give up.' Advertisement Hide Ad Advertisement Hide Ad The UK government insists only around 500 farms will be impacted, but the figure is disputed, with rural groups claiming the impact will extend a lot further. A report published earlier this year showed almost half (49 per cent) of farmers have paused or cancelled investment in their businesses because of what the fiscal changes would bring. Farming unions have previously called for a pause in the debate until a profitability review of farmers in the UK had been carried out. Last month, the Commons Environment, Food and Rural Affairs Committee (Efra), which includes seven Labour MPs - a majority - warned UK ministers should delay the reforms to farming inheritance tax due to 'poor' communication in policy that could impact vulnerable farmers. Advertisement Hide Ad Advertisement Hide Ad The Efra report called on UK government ministers to push back announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. They said by doing so it would bring a 'better formulation of tax policy', which would buy more time for 'vulnerable farmers' to seek advice. A response to the report from ministers is due to be issued next month, the NFU Scotland said. Secretary of State for Scotland Ian Murray, who also attended the show, acknowledged there are disagreements in the agricultural sector over the so-called family farm tax, but insisted 'we're not going to change our minds'. Scottish Secretary Ian Murray | PA Despite opposition to the proposed tax changes from farming unions, Mr Murray, who attended the UK Government stall at the show, said the debate had not led to antagonism at the show. Advertisement Hide Ad Advertisement Hide Ad Mr Murray said: 'I've just met with the NFUS and the president there. 'We had a long discussion for 40 minutes on issues we're helping them with.' He said these included seasonal worker immigration issues. The Scottish Secretary added: 'They're very, very happy about the SPS agreement and the EU trade deal. 'They want to advance that and go even further for obvious reasons. Advertisement Hide Ad Advertisement Hide Ad 'And then we had a small chat about inheritance tax as well. 'Of course it's an issue where we're not going to agree on everything. 'But the UK Government's been pretty clear that we made that change in October, we're not going to change our minds on that. 'So we're going to have continued dialogue and discussions with the industry.'
