Budget muddles the province’s core economic messaging
No clear signal B.C. is serious about encouraging investment
Everyone knew B.C.’s budget would be a tough one. There is no easy fix for large, structural deficits that continue to shatter all the wrong records. Given this grim reality, it’s hard to understand why the government failed to use this opportunity to reinforce its key economic message. After all, budgets are just as much about setting direction and building confidence as they are about presenting numbers.
For months, the province has urged Canada to “look west” for big projects, promised that B.C. will be the country’s “engine of economic growth,” and reminded us that “you can’t pour from an empty cup” when it comes to protecting core services.
Unfortunately, those sentiments were largely absent from the budget, leaving many investors looking in any direction other than west. What was missing was a clear signal that British Columbia is serious about creating the conditions where businesses feel confident investing and expanding.
The headline on the government press release was “Budget secures B.C.’s future, protects critical services.” At the risk of playing Monday morning quarterback, a better headline would have been “Budget makes economic growth a top priority to protect critical services.” It may seem like a small change, but that framing would have supported the narrative that the government is serious about “filling the cup.”
The Budget introduced various tax increases, making the province less affordable, less investible, and less attractive for top talent. This includes expanding the provincial sales tax, which already makes the province uncompetitive from an investment standpoint and will make things more expensive for consumers. It also means personal income tax brackets will no longer be indexed to inflation for the next three years, representing an income tax increase for most. British Columbia and other provinces eliminated this unfair policy years ago. What message is the government trying to send by bringing it back?
On big projects, the government has a good story to tell that could have been better highlighted. Four of the 11 projects the federal government has on its Major Projects list are in British Columbia, representing roughly $80 billion of the $116 billion of potential capital investment. There has also been progress in improving permitting timelines and in recent months three mining projects received all the authorizations they need and now await final investment decision.
Expanding on this more positive narrative, and recognizing that B.C. has a diverse economy, the government could have clearly stated that its priority is attracting investment across all sectors, while outlining concrete steps to support that goal. This does not require significant new spending. For example, a broader push to reduce red tape would be welcome. The government could also have sent a signal that taking the PST off business inputs would be a priority once the fiscal situation stabilized.
Messages alone can’t turn the economy around, but they are an important indicator of where the government’s priorities lie. When matched by action, they can be a powerful catalyst to attracting more investment, which in turn can lift government revenues.
Unfortunately, this budget does not support the narrative that the government is focused on the economy. Tax increases, combined with a lack of serious fiscal discipline, crater confidence that the government knows how to attract and retain the talent and capital needed to reverse its current trajectory.
Put simply, this budget was a flop. It muddles the government’s broader economic message, making it harder to persuade investors that growth is truly the top priority.
So, what happens now?
Convincing British Columbians that the future is bright just became more difficult than it needed to be. A better budget would have put a clear emphasis on economic growth and spending discipline as the path to protecting essential services, without raising taxes.
Unless the government gets serious about consistently and relentlessly working to improve the conditions for business in this province, and communicating that well, protecting critical services will only become more difficult. Let’s hope the government gets the memo.
Laura Jones is President and CEO of the Business Council of British Columbia.
Braden McMillan is Senior Director of Communications & Public Affairs at the Business Council of British Columbia
As published in the Vancouver Sun on February 25, 2026.