Business leaders seek clarity on B.C.’s fiscal path, Eby fails to provide

Premier David Eby started his Vancouver Board of Trade’s B.C. Budget Address with a clear message: the economy is the “main priority” of his government’s latest fiscal plan. Yet for many in the room, that claim rang hollow in the keynote address and Q&A that followed.

B.C. business community and Eby Government are not on the same page”
— Bridgitte Anderson, President and CEO, Vancouver Board of Trade

While today the Premier emphasized growth, competitiveness, and opportunity, the budget’s headline measures tell a different story. Prioritizing expanded social spending, new taxation measures such as the extension of PST to professional services, and a historic expansion in skilled trades investment, all raised questions about alignment between messaging and fiscal measures and underscores a widening gap between the Eby government and British Columbia’s business community.

The Premier attempted to point to encouraging indicators: B.C. ranking second in Canada for economic growth, $50 billion in private-sector investment in LNG, energy, and mining, $20 million in federal defence spending, and mining giant and joint venture Anglotech opening a Vancouver office. He reiterated commitments to expedite permitting for major projects and emphasized the importance of strong partnerships with First Nations, alongside a clear defence of private property as a core principle of economic stability.

However, business leaders, represented by Vancouver Board of Trade President and CEO Bridgitte Anderson, were left searching for a clear plan from Eby on the province’s long-term fiscal trajectory (she had to ask the question twice!).

Eby responded by citing external factors beyond the control of this government to explain B.C.’s record debt and deficits. He referenced debt levels in Ontario, anticipated deficits in Alberta, and revenue pressures in the U.K., the U.S., and Europe. It raises a broader question: is benchmarking ourselves against the fiscal challenges of other jurisdictions the extent of this province’s economic plan?

Questions from the audience provided little reprieve for the Premier. When asked to justify how a 20 per cent increase in B.C.’s population correlates to a massive 115 per cent rise in public sector compensation, Anderson noted the private sector has been “ringing the alarm bells” for years, warning that public sector costs like this (80,000 new public sector FTEs) are simply unsustainable. Again, the Premier seemed to deflect, claiming that much of this growth was to hire doctors and nurses to support an aging population.

Perhaps the most pointed exchange came when Anderson relayed that a VBOT member was considering relocating to Alberta. In response, the Premier criticized Alberta’s political climate and fiscal outlook, concluding with a remark referencing the Board of Trade’s “D” grade on the budget: “I don’t mind getting a D, if the other students in the class are also getting a grade.”

For many in the audience, that analogy missed the mark. The Premier forgetting, or blatantly disregarding, that British Columbians only care about one “student” in this “class,” and he’s the one responsible the budget.

Less than a year after the Premier described a “near-death election experience” and pledged renewed support for business, the quiet reception in the room spoke volumes. Business leaders want partnership, predictability, and a credible plan to ensure today’s spending does not compromise tomorrow’s prosperity. Until those assurances are clearly articulated, the perception will persist that B.C.’s business community and the Eby government are not on the same page.

To explore the implications of B.C.’s fiscal direction for your business, connect with our Public Affairs team.