The Abbotsford Chamber of Commerce believes the time for the province of British Columbia to focus on building back up the economy and local businesses was long before the release of Tuesday's (March 4) budget.
With tariffs arriving on Canadian businesses by the United States, a large debt looming and several other challenges, ACOC CEO Alex Mitchell stated that more needed to be addressed in the budget to aid Abbotsford businesses. According to a study from the Canadian Chamber of Commerce, Abbotsford is the most vulnerable city in British Columbia to the 'Trump tariffs'.
"While we can’t control the decisions of the American government, this time must be a wake up call for the province to prioritize economic growth and catalyze major change towards finally removing the barriers that have been holding our businesses back through decades of accumulated red tape,” she said. “As one of the most tariff-exposed Canadian cities, the needs of Abbotsford businesses and our over 300 exporters need to be at the forefront, as the economic fallout will reverberate across the rest of the province."
Mitchell said that past deficits have reduced the fiscal power of the province and will create issues as the entire country tries to deal with whatever tariffs are thrown B.C.'s way.
"This new budget only adds to that challenge with overall debt ballooning to $75 billion by 2028,” she said. “While it’s encouraging to see language related to supporting growth, and speeding up permitting, we need to see that actualized quickly for the benefit of all of our businesses.”
The budget features continued reliance on significant deficits, approximately $10 billion in each of the next three years. The budget also does not take into account the expected impacts of US tariffs, which could result in significant of loss in revenue annually to the province.
The deficit is estimated to exceed $10.9 billion in 2025-26 – almost exactly $2 billion, or 22 per cent, higher than what was forecast in the previous year. The province is looking to a total of $84 billion in revenue and $94.9 billion in expenses. Those numbers in a worst case scenario with tariff impact could increase the deficit another $3.4 billion.
The budget also includes $4 billion in contingencies – up from $3 billion last year – to give B.C. the flexibility to respond to the impacts of U.S. tariffs, which B.C.’s Finance Minister Brenda Bailey predicts to be “severe” as job losses could mount. Under the most recent scenario, 45,000 British Columbians could lose their jobs because of the tariffs.
Bailey added that the budget also includes targeted relief measures: an ICBC rebate of $110 for eligible drivers in April 2025 and additional support for housing.
Government had already announced the cancellation of what would have been its signature budget policy, a $1,000 grocery rebate followed by a permanent middle-income tax break for 90 per cent of households.
Meanwhile, the carbon tax remains. It will rise by $15 per tonne to $95 per tonne April 1, generating about $3 billion in revenue for 2025-26. Government plans to return about half of that money to British Columbians in credits.
Economists had been predicting higher deficits heading into the budget. However, the general forecast – at least for the next two years – foresees double-digit deficits; $10.9 billion in 2025/26 and $10.2 billion in 2026/27 before dropping to $9.8 billion in 2027/28.
B.C. Premier David Eby acknowledged that the tariff would hurt British Columbia, but also painted a scenario in which they spark a collective response that maximizes B.C.’s many strengths, including its strategic access to Asia-Pacific, resource wealth and tourism.
“We are going to pull together, we are going to fight and we are going to win,” he said.
Eby also re-stated that Canada would never become the 51st state.
-With files from: Wolf Depner/Black Press Media
