B.C.’s 2026 budget hits a record $13.3B deficit amid tax hikes and job cuts, while investing in healthcare, education, and local projects.
Historic Deficit in B.C.’s 2026 Budget Raises Concerns
The 2026 provincial budget has officially landed, and it’s making waves. Surrey & White Rock Board of Trade (SWRBOT) CEO Joslyn Young, alongside Policy & Media Advisor Aman Parmar, attended the Budget Lock-Up in Victoria to get a first look. The numbers reveal a $13.3 billion deficit—the largest in B.C.’s history.
Despite the government’s efforts to curb spending with new tax measures and a plan to reduce 15,000 public service positions, the deficit is expected to climb further. This has sparked debate over how sustainable the province’s fiscal path really is.
“We appreciate the government’s continued investment in essential services,” said Joslyn Young. “Yet businesses are facing rising costs and uncertainty. Our members need a stable and affordable environment and a clear roadmap back to fiscal balance.”
Key Tax and Workforce Changes in 2026
Several major shifts will affect residents and businesses starting this year:
- PST Expansion: Professional services such as accounting, engineering, architecture, strata management, and security will now fall under the provincial sales tax, increasing operating costs.
- Income Tax Hike: Personal income tax rises for the lowest bracket, costing individuals an extra $76 to $201 annually.
- Public Sector Cuts: The government plans to reduce the public service by 15,000 positions by 2028.
Major Investments Highlighted in the Budget
Despite the deficit, the budget includes substantial funding for key areas:
- Healthcare: $2.8 billion for facility construction and upgrades
- Skills & Workforce Development: $283 million for training programs
- Community Safety: $139 million for public safety initiatives
- Affordable Childcare: $330 million to expand access
- Business Incentives: A new 15% refundable investment tax credit for manufacturing and processing capital purchases, supporting up to $2 million per business
Local Projects in Surrey and White Rock
The budget also reinforces commitments to local priorities:
- $2.9 billion for the Cloverdale Hospital and Cancer Care Centre
- $521 million for Simon Fraser University’s permanent School of Medicine
- $143 million for new student housing at Kwantlen Polytechnic University
SWRBOT to Monitor Impacts on Local Businesses
SWRBOT will continue analyzing the budget to understand its effects on businesses across Surrey and White Rock. The organization is engaging members to ensure they are equipped to navigate the changes ahead.
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