2025 BC Budget Review from Langley Chamber
2025 BC Budget Review from Langley Chamber
March 4 -- Today, the recently re-elected provincial government released its first budget. The Langley Chamber attended the private budget lock-up in Victoria today in person, getting a detailed, early look at the budget, and gathering information on the government’s plans from official staff so we can provide this update directly for our members.
Below, read the Langley Chamber’s initial review and summary of the 2025 Budget:
Today's BC budget was released on the same day that US tariffs came into effect, and Canada’s retaliatory tariff measures began to roll out.
Given these challenging economic times the province faces, the Langley Chamber was hoping the government would be focused and clear-eyed on the need to strengthen and expand businesses and economy, and create more opportunities for British Columbians. Against that measure, we found the budget wanting.
“Premier Eby said this morning that the best way to deal with tariffs was to grow our economy, but unfortunately this budget does not focus on economic growth and fails to meet the moment.”
Deficit
Budget 2025 includes a deficit of $10.9 billion in 2025-26, and forecasts further deficits of $10.2 billion in 2026-27 and $9.9 billion in 2027-28. This follows the $9.1 billion deficit for the current 2024/25 fiscal year. Combined, these 4 years represent over $40 billion in deficit spending. There was no clear plan outlined on how to bring this budget into balance, and it in fact could worsen as the economic impact of tariffs materialize.
Economic Outlook
It is estimated that the B.C. economy expanded by 1.2% in in 2024. Looking ahead, economic growth was forecast to increase to 1.8% in 2025 and then by 1.9 % in 2026. However, with the tariffs imposed today the outlook changes. BC GDP growth is now projected to be only 0.3% in 2025 and 0.8% in 2026, illustrating to significant economic impact of the tariffs.
Crime
The Chamber is pleased to see the government launching a new Community Safety and Targeted Enforcement Program to specifically target robbery, shoplifting, theft and property-related offenses by providing police with enhanced tools and resources to curb these crimes.
At the budget lock-up, the Langley Chamber spoke with the Ministry of Public Safety to emphasize the need to address grinding property and business crime that can impact our small business community, and the need for reforms to allow more prosecutions for those committing these crimes.
Business and Economic Development
Budget 2025 announces little in new programming or tax relief to support economic growth.
The Budget does boost tax credits for the province’s film sector and digital media and video game industry, which is a positive move especially given Langley’s growing film/tv sector.
The Budget commits to reviewing BC’s exceptions under the Canadian Free Trade Agreement and will work with other jurisdictions to mutually recognize each other’s regulatory measures respecting the sale and use of goods in Canada.
The Langley Chamber applauds this focus on improving interprovincial trade, and calls on the BC government to aggressively reduce its barriers to the movement and sale of goods, services and labour across Canada through a mutual recognition framework.
Capital Projects
Capital spending planned over the next three years will total $45.9 billion, which includes money for the Surrey-Langley SkyTrain extension and the Highway 1 Expansion Project, both critical transportation investments for Langley. The Budget includes funds for a new middle school and secondary school for Langley in the growing Smith neighbourhood, but there is no mention of new investments in critically-needed health care facilities for Langley.
The budget includes $318 million more over three years to deliver more middle‑income rental homes through the ‘BC Builds’ program. The Langley Chamber welcomes this focus on housing supports for working people who are often overlooked in housing policy and helps support our local workforce.
ICBC Rebate
ICBC is providing a $110 rebate to eligible drivers with payments anticipated in April, 2025. Any personal and commercial ICBC customers who had an active eligible basic insurance policy in January 2025 will receive the rebate.
Other Items
Government has implemented hiring restrictions for the public service, limiting hiring to essential positions. This is a positive move given the high growth in public-sector employment over the last number of years.
The Budget contains $75 million more in 2025/26 and $150 million more annually starting in 2026/27 to strengthen its rental supports for lower income families and seniors through the Rental Assistance Program and the Shelter Aid for Elderly Renters program.
The Budget contains $370 million for the K-12 education system, including hiring additional teachers, special education teachers, teacher psychologists and counsellors.
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