Category: 3. Business

After a year of trade tensions and high food prices, many British Columbians are heading into 2026 closely watching their household budgets.

U.S. tariffs dominated headlines throughout 2025, hitting key B.C. industries like lumber, as well as aluminum, steel and vehicles.

To help boost economic activity, the Bank of Canada cut interest rates several times in 2025 and held its benchmark lending rate steady at 2.25 per cent in its last monetary policy update, but the central bank has stressed it cannot restore the economy “to its pre-tariff path.”

Inflation has cooled since the pandemic and is hovering just above two per cent, but everyday costs for many families remain high, especially for food. 

Here’s what British Columbians can expect to pay more or less for in the year ahead.

Grocery prices

Food prices were given a brief reprieve earlier this year due to a temporary tax break.

From mid-December 2024 to mid-February 2025, the federal government removed GST and HST on most food and beverages, which, according to a latest food price report, brought food inflation down to -0.6 per cent in January, the first negative reading in more than eight years.

That relief was short-lived, though, according to Canada’s Food Price Report 2026. Once the tax break ended, prices reset, driving up food inflation higher. 

According to the report, food prices in Canada could increase by four to six per cent next year, largely driven by pricier meat products. 

Beef in particular is expected to get more expensive, potentially rising seven per cent, as cattle sizes shrink (those markets are susceptible to tariffs) and more ranchers leave the industry, the report found.

It estimates the average family of four will spend $17,571 on food this year, up to $994 more than in 2025. Food prices are now 27 per cent higher than they were five years ago.

In B.C., those pressures are already showing up at food banks. Food Banks B.C. says visits for food have increased nine per cent in a year, with more than 1.3 million British Columbians experiencing food insecurity as charities struggle to meet demand.

Utilities

Several utility rate increases are set to take effect in 2026.

FortisBC electricity customers will see a 3.63 per cent rate increase starting Jan. 1, amounting to about $5.35 more per month for the average household. The utility says higher electricity-purchase costs are a key driver.

Natural gas customers will see a steeper jump with an about 11 per cent increase to their bills — roughly $10.95 more per month. FortisBC says the increase will fund system upgrades and expanded energy-efficiency programs.

B.C. Hydro customers can expect an increase as well, adding about $3.75 per month to the average household bill. 

Housing and rent

The B.C. Ministry of Housing says it’s capping the annual rent increase at 2.3 per cent in 2026, down from three per cent in 2025. 

The province said the maximum allowable increase is tied to inflation, in particular the Consumer Price Index, which represents changes in goods and services, such as food, shelter and transportation by comparing them over time.

Home prices, meanwhile, are expected to further soften. According to a market survey forecast by Royal LePage, the aggregate home price in Greater Vancouver will fall 3.5 per cent year over year by the fourth quarter of 2026 to $1.15 million.

Detached homes in the area are projected to decline five per cent to $1.6 million, while condo prices are expected to drop three per cent to about $713,000.

Real estate experts say the drop is because of high inventory levels, economic uncertainty and hesitant buyers.

“With plenty of inventory available and prices edging downward, there is little urgency for buyers to move quickly. In this environment, many feel comfortable waiting, watching and weighing their options before making a decision,” Randy Ryalls, managing broker with Royal LePage, said in a statement. 

Transportation

In 2026, transit fares in Metro Vancouver will jump another five per cent, after which there will be a two per cent yearly increase. It’s part of a 10-year investment plan, which, according to TransLink, will keep them fiscally sustainable until the end of 2027. 

The transportation authority says the funding will allow service expansions across dozens of routes.

B.C. Ferries will implement an average fare increase of 3.2 per cent on April 1, though more discounted “saver fares” will be available during off-peak sailing hours. A standard vehicle fare between Metro Vancouver and Vancouver Island will increase by $5, to $110.

ICBC says it will not increase the rates for basic auto insurance this year. This marks the seventh consecutive year that the Crown corporation has not increased the rates.

The proposed development will provide an extra 25,833 sq ft (2,400 sq m) to the breakfast cereal facility.

Cereal Partners UK has been operating in the Trowbridge area since the mid-20th century.

The company says the development will help it return to the peak levels of production seen in 2020.

In March, the company announced the closure of its plant in the Wirral with the loss of more than 300 jobs, blaming changing consumer habits.

“Sales of breakfast cereal are in significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options,” said a spokesperson.

In November, the firm applied for planning permission to install ‘flood resilience measures’ following a “significant flooding event” in November 2024, where flood waters almost breached the building, risking safe production.

That application is still under consultation

According to the Local Democracy Reporting Service, a council report stated that as part of its 2025-26 budget, it had made a commitment to release a number of buildings to generate a targeted £5m.

“The disposal of this property is therefore critical to contributing to this target,” it said.

An auction was the quickest way of disposing of the building and getting the best price, the council said.

The report added: “While no guarantees can be given, it is anticipated a new owner will refurbish or redevelop the property into productive uses, adding to the local economy.”

The Stocks Hill Hub was closed as part of plans to reduce the number of sites offering the council’s Day Opportunities service from six to three, saving £500,000.

As part of those plans, the Lovell Park hub would move to Wykebeck Complex Needs Centre and Vales Circles in Beeston would join Laurel Bank Complex Needs Centre in Middleton.

As we enter a new year, politicians at every level of government are promising to make your lives more affordable.

Now’s your chance to decide how they’re doing. Here’s how federal, provincial and municipal taxes will change for residents of Manitoba and Winnipeg in 2026.

Federal tax changes

Basic personal income amount (non-refundable tax credit): Total income under $16,452. This rises $323.

Taxation rate on the first personal income tax bracket: Down one percentage point (from the start of 2025) to 14 per cent. This will save the average Canadian who files a tax return $190, according to the parliamentary budget officer.

First personal income tax bracket (income taxed at 14 per cent): $16,452 to $58,523. The ceiling on this bracket rises $1,148.

Second personal income tax bracket (income taxed at 20.5 per cent): $58,253 to $117,045. The ceiling on this bracket rises $2,295.

Third personal income tax bracket (income taxed at 26 per cent): $117,045 to $181,440. The ceiling on this bracket rises $3,558.

Fourth personal income tax bracket (income taxed at 29 per cent): $181,440 to 258,482. The ceiling on this bracket rises $5,068.

Highest personal income tax bracket (income taxed at 33 per cent): Any income higher than $258,482.

Canada Pension Plan: Maximum pensionable earnings increase by $3,100 to $74,600. This increases the maximum employee and employer contribution for the year by $196.35 to $4,230.45

Employment Insurance: The EI tax rate drops 0.01 percentage points to 1.63 per cent, but the maximum insurable amount increases by $3,200 to $68,900. 

Industrial carbon tax: On the rise from $95 a tonne to $110 per tonne, though it’s unclear how this will be passed down to consumers.

Consumer carbon tax: Carbon taxes? We ain’t got no carbon taxes. We don’t need no carbon taxes. I don’t have to pay you any stinkin’ carbon taxes.

Manitoba tax and fee changes

Cloud computing tax: Starting on Jan. 1, provincial sales tax will apply to computing services such as internet-based subscriptions to software, data servers and storage, and online platforms that provide tools to develop apps.

Hydro rates: Up four per cent on Jan. 1 in a move that will cost the average Manitoba household that uses electricity only for power an additional $50.40 in 2026, according to Manitoba Hydro. The average household that uses electricity for heating as well as power will pay an additional $96.60, Hydro estimates.

Campground fees: The nightly cost of publicly owned cabin rentals in selected provincial parks will rise in the new year to a range of $45 to $85 from the current $38 to $69. Yurt rentals will increase to $65 a night from $56. There are also nominal fee increases for campsite rentals as well as a new $10 fee for cancelling campsite reservations.

An end to provincial income-tax bracketing: The province will stop sliding income tax thresholds to keep pace with inflation in 2026. The Canadian Taxpayers Federation says the resulting bracket creep will cost Manitobans who file income taxes $82 million next year.

Provincial income tax brackets: The basic basic personal income amount — also known as the non-refundable tax credit — will remain $15,780. Income between $15,780 and $47,000 will continue to be taxed at 10.8 per cent. Income between $47,000 and $100,000 will continue to be taxed at 12.75 per cent. Income over $100,000 will continue to be taxed at 17.4 per cent. 

Provincial property taxes (also known as education taxes): The maximum credit rises $100 to $1,600. Since this is the second year of a flat education tax credit, there won’t be anywhere near as many wild fluctuations in the paper property tax bills that present the combined tab for provincial and municipal property taxes.

Credits for renters: Up $50 to $625.

Winnipeg tax and fee changes

Property taxes: Up 3.5 per cent. This hike will add $75 to the municipal portion of a tax bill for a property assessed at $371,000. 

Winnipeg Transit: Adult fares up 10 cents to $3.45.

Most city fees: Up 2.5 per cent across the board, with some exceptions. The fee hike in 2025 was five per cent.

Waste management fee (for garbage and recycling collection): Up $10 per detached household to $264. For units in multi-family buildings, the fee rises $7 to $134.

Water rate: Up eight cents per cubic metre, to $2.17.

Sewer rate: Up 13 cents per cubic metre, to $4.53.

Sources: City of Winnipeg, province of Manitoba, government of Canada

1 January 2026

Take action early and seek good advice when it comes to transferring the family farm, writes Ruth Fennell, Collaborative Farming Specialist, who discusses how the O’Connor family from Roscommon are availing of reliefs that will allow the family farm to pass between generations with minimal or even no tax burden whatsoever.

Transferring the family farm is often approached with nervousness and hesitation, largely due to fears of triggering substantial tax liabilities. As a result, some families choose to postpone the process. The bad news is that putting something on the long finger rarely helps. The good news is that with early planning and the right financial and legal guidance, there are several valuable tax reliefs available for the transfer of agricultural assets. These reliefs can allow many family farms to pass between generations with minimal or even no tax burden whatsoever.

The case of the O’Connors shows what can be achieved. The family have been farming at Cloonfad, Willsbrook, Co. Roscommon for generations. Currently, the farm is owned by Gerard O’Connor. It was transferred to him as a lifetime gift from his father John when Gerard was in his early 20s. The farm is all in grass and has been run by Gerard as a successful suckler beef farm for decades. Gerard has three children. His son Shane had always shown a keen interest in the farm and was identified early on as the likely successor.

Shane has been actively involved in the running of the farm, even during his many years in education. He initially completed a diploma in degree in planning in Edinburgh. He is currently completing a Master’s degree in Spatial Planning in Dublin. Despite his education, Shane maintained his strong interest in farming and went on to complete the Green Cert at the local Teagasc office in Roscommon in 2012. At the time, Ireland was in a deep recession, and Shane began making plans to develop the farm. By generating more output and income he hoped ultimately to be able to return to farming, at least part-time.

Aidan, Shane and Evelyn O’Connor with Colm Murray, Teagasc advisor

Plans on hold

Initial discussions began regarding the farm transfer from Gerard to Shane, but as the economy improved and construction work became more available, the plans were put on hold. In 2015, with the launch of a new CAP funding round, Shane was added to Gerard’s herd number, forming what is commonly known as a joint herd number or joint venture. This was the minimum requirement for Shane to qualify for the Young Farmers’ Scheme that was available at the time.

While the land transfer was paused due to Shane’s career uncertainties, he remained actively involved in farm operations alongside Gerard. “Alternatively, they could have considered a Registered Farm Partnership and potentially, a Succession Farm Partnership at this stage that would have allowed Shane to qualify for the Young Farmers’ Scheme and it would have also provided additional TAMS funding and significant tax reliefs to the partners,” says Ruth Fennell.

At the outset of the joint venture, suckler cow numbers were in the high 20s and progeny were sold as weanlings. The system evolved over time; with Gerard now less involved in day-to-day tasks, Shane has simplified operations due to his full-time, off-farm job. “We reduced cow numbers and decided to keep all progeny up to the forward store stage,” he says. “The system is working well and allows us to maintain a closed herd.”

Plans are now well advanced to transfer the farm from Gerard to Shane. It is expected that Shane will transfer the herd number into his sole name and that the 2026 BISS application will be submitted under his name rather than through the current joint venture. When assessing the tax implications of this lifetime transfer, several issues must be addressed. As it is a gift rather than an inheritance, both Gerard and Shane must consider taxes and potential reliefs.

From Gerard’s perspective – as the disposer of the asset – the relevant tax is Capital Gains Tax (CGT). This  is calculated based on the asset’s value when Gerard received it from his father and its value now. Any increase is subject to CGT at 33%. However, Retirement Relief may apply. As Gerard has owned and farmed the land for over 10 years, is under 70 at the time of transfer and is transferring it to his son, he can claim this relief. Under Retirement Relief, up to €10 million in agricultural assets can be transferred tax-free. This should ensure Gerard avoids CGT on the transfer. If Gerard was over 70 when transferring, the Retirement Relief would be capped at €3 million when disposing to a son/ daughter. For Shane – the beneficiary – two taxes are relevant. The First is Stamp Duty, currently 7.5% of the value of non-residential land. Had this been an inheritance, Stamp Duty would not apply.

Thresholds

Since Shane is over 35, he doesn’t qualify for Young Trained Farmer Relief, which would have reduced the rate of Stamp Duty to 0%. To avail of the Young Trained Farmer 0% relief, the applicant must be under 35 and also hold a recognised agricultural qualification and actively farm the land themselves. However, Shane does qualify for Consanguinity Relief, as he is receiving the farm from a blood relative and will actively farm it. This reduces the Stamp Duty rate to 1%, a significant saving.

The second relevant tax for Shane is Capital Acquisitions Tax (CAT). This applies to the value of the gifted asset. Under a Category A relationship (parent to child), Shane can receive up to €400,000 tax-free. Anything above that is liable for CAT at a rate of 33%. Agricultural Relief may apply, and this reduces the value of the agricultural asset by 90% for CAT. To avail of this, two conditions must be met:

1.  At least 80% of Shane’s total assets on the date of the gift must be agricultural assets.
2. He must hold a relevant qualification and/or spend at least half of his time farming, or alternatively lease the land to someone who does for a minimum of six years.

Where the conditions for Retirement Relief or Agricultural Relief cannot be met, there are alternatives such as Entrepreneurial Relief and Business Asset Relief. These possibilities should be discussed with a financial advisor. In addition to these tax considerations Shane will need to submit an ER1 form to the local District Veterinary Office to transfer the herd number to his sole name as it is currently in joint names with his father. Shane must also complete an ‘Auth’ form to grant his advisor access to the DAFM online system and complete a transfer of entitlements from the joint venture to the new sole herd number.

Careful planning is essential to ensure a successful and tax-efficient transfer of farm assets. Professional legal and financial advice should be sought, and the Succession Planning Advice Grant (SPAG) can help finance this support. “If you get good advice you can negotiate the transition without too much hassle or cost,” says Shane who now looks forward to continuing the O’Connor family farming tradition for many years to come.

This article first appeared in the November/ December 2025 edition of Today’s Farm

Featured image: Gerard, Evelyn, Aidan, Alisha, Shane, and Memie O’Connor. Included in the photo is their Teagasc advisor, Colm Murray.