The federal government’s 2026 budget, Canada’s Budget 2026: Masters of Our Destiny, outlines $142.1 billion in new measures over five years, focused on strengthening Canada’s economic competitiveness, attracting investment, improving productivity and addressing affordability.
With global trade uncertainty, U.S. tariffs and ongoing economic pressures facing Canadian businesses, the budget places significant emphasis on infrastructure, housing, workforce development, technology, and trade diversification.
For British Columbia, and particularly the Surrey and White Rock business community, several announcements present important opportunities. Investments in trade infrastructure, major projects, housing, skilled trades, electricity and business productivity could help strengthen the region’s economic position, support local employers and create new opportunities for investment.
The Surrey & White Rock Board of Trade (SWRBOT) has reviewed the budget and identified the following highlights and considerations for our members.
1. Key Budget Highlights
Transportation, Trade and Major Infrastructure
What was announced:
- Continued federal support for trade-enabling infrastructure, including ports, rail networks, airports and transportation corridors.
- A $5-billion Trade Diversification Corridors Fund and $1-billion Arctic Infrastructure Fund.
- Establishment of a Transportation Projects Office to coordinate federal approvals and accelerate priority transportation projects.
- 28 projects identified through the federal Major Projects Office, including six in British Columbia.
- Projects include Roberts Bank Terminal 2, the Port of Vancouver Gateway Strategy, North Coast Transmission Line, LNG Canada Phase 2, Ksi Lisims LNG and the Red Chris Mine Expansion.
Housing and Community Infrastructure
What was announced:
- An additional $13 billion over 10 years for Build Canada Homes, bringing its total capitalization to $45 billion.
- A target of approximately 200,000 new homes through Build Canada Homes over the next decade.
- $10.5 billion in capital investments toward building the homes Canada needs.
- $9.5 billion for housing and infrastructure in Indigenous communities.
- Funding for modern construction methods, modular housing and improvements to municipal permitting processes.
Business Investment and Productivity
What was announced:
- A $36.1-billion Productivity Mega Deduction, allowing businesses to immediately expense a broader range of eligible capital investments.
- Eligible investments include machinery, equipment, software, computers, research and development, patents and certain infrastructure.
- A proposed Canada Growth Incentive, including a capital gains tax exemption of up to $15 million on eligible investments in Canadian companies.
- Expanded small-business capital gains rollover provisions.
- $930 million over five years to expand the Scientific Research and Experimental Development (SR&ED) tax incentive to include certain commercialization expenses.
Workforce Development and Skilled Trades
What was announced:
- $2 billion over five years for provinces and territories to expand pre-apprenticeship and technical training capacity.
- A $5,000 completion bonus for eligible apprentices achieving Red Seal certification.
- Up to $10,000 in incentives for eligible employers hiring first-year apprentices in designated trades.
- Funding for up to 100,000 paid youth work placements over five years.
- Additional support for employers retaining and retraining workers affected by trade disruptions.
- A new immigration plan targeting 380,000 permanent residents and 370,000 new temporary resident arrivals annually.
Technology, AI and Innovation
What was announced:
- Continued implementation of Canada’s National Artificial Intelligence Strategy.
- Investments in domestic AI computing infrastructure, research and commercialization.
- $1 billion over six years for the Strategic Response Fund to support research, development and innovation.
- Expanded support for technology adoption, intellectual property and Canadian innovation.
- Recognition of TELUS data-centre investments in British Columbia as part of Canada’s growing AI infrastructure capacity.
Energy and Electricity Infrastructure
What was announced:
- Continued investment in electricity generation, transmission and grid modernization.
- Extension of clean technology and clean electricity investment tax credits to 2040.
- Approximately $6 billion over six years for emerging electricity generation technologies.
- Support for energy storage, renewable energy and industrial electricity infrastructure.
Tariff Relief and Affordability
What was announced:
- Nearly $44 billion in previously announced federal support for businesses and workers affected by tariffs and trade disruptions.
- Additional financing and support through programs such as the Business Development Bank of Canada and the Regional Tariff Response Initiative.
- $4.1 billion in additional support through the Canada Groceries and Essentials Benefit.
- Extension of the temporary federal fuel excise tax suspension through January 2027, followed by a partial restoration through March 2027.
Federal Fiscal Outlook
What was announced:
- Total new budget measures of $142.1 billion over five years.
- A projected federal deficit of $62.3 billion in 2026-27.
- The deficit is projected to decline to $52.9 billion by 2030-31.
- The government aims to balance day-to-day operating spending with revenues by 2027-28.
2. SWRBOT Analysis: What Does This Mean for Our Business Community?
Budget 2026 identifies several opportunities to strengthen Canada’s economic competitiveness and support business investment. For British Columbia, and particularly Surrey and White Rock, the announcements have important implications for trade, infrastructure, workforce development and business productivity.
Strengthening trade and transportation infrastructure
The identification of Roberts Bank Terminal 2 and the Port of Vancouver Gateway Strategy reinforces British Columbia’s importance as Canada’s gateway to international markets. Increased port capacity and improved trade corridors could create significant opportunities for Surrey’s manufacturing, transportation, logistics and industrial sectors.
However, expanding port capacity must be accompanied by improvements to the transportation networks that connect businesses to these facilities. Congestion and infrastructure bottlenecks continue to affect the movement of goods throughout the Lower Mainland.
SWRBOT will continue advocating for the Massey Tunnel replacement, Highway 99 and Highway 1 improvements, stronger regional freight connections and investment in critical goods-movement corridors.
Housing and infrastructure must go hand in hand
Housing investments are important not only for affordability but also for employers’ ability to attract and retain workers. Surrey’s continued population and economic growth will require additional housing, but also the roads, water, sewer, transit, healthcare and community infrastructure needed to support it.
SWRBOT believes federal housing commitments must be met with predictable infrastructure funding for rapidly growing municipalities. Businesses and communities cannot realize the benefits of growth without the infrastructure capacity to support it.
Making businesses more productive and competitive
The Productivity Mega Deduction and Canada Growth Incentive introduce important opportunities for businesses looking to invest, modernize and expand. Lowering the tax cost of eligible capital investments can encourage businesses to purchase new equipment, adopt technology and increase productivity.
These measures are particularly relevant to manufacturers, technology companies and growing small businesses.
However, tax incentives alone may not be enough for SMEs that face financing constraints or lack the resources to implement new technologies. SWRBOT encourages additional grants, financing and practical support to help smaller businesses adopt AI, automation, cybersecurity and other productivity-enhancing solutions.
Addressing workforce challenges
Investments in skilled trades, apprenticeships and youth employment are important for addressing labour shortages and ensuring businesses have access to the talent they need.
The success of these programs will depend on their alignment with actual employer demand. Stronger partnerships between businesses, post-secondary institutions and industry associations will be essential to connecting training with available employment opportunities.
SWRBOT encourages continued investment in employer-led training, apprenticeships, work-integrated learning and initiatives that help internationally trained workers enter the Canadian workforce.
Non-profits are important partners in strong communities
A thriving economy depends on more than business investment alone. Strong communities also require effective social services, affordable housing, mental health and addictions supports, and organizations that help people access opportunities.
The Budget’s commitments related to homelessness, supportive housing and community health infrastructure recognize the importance of these services. Non-profits play an important role in delivering supports and connecting people with the resources they need.
While the Budget does not represent a broad funding increase for the entire non-profit sector, its targeted investments may create opportunities for collaboration between governments, community organizations, businesses and philanthropic partners.
Supporting innovation and reliable energy infrastructure
Investments in AI, research and development, electricity generation and transmission will help create the foundation for future industrial and technological growth.
As businesses increasingly adopt AI and automation, reliable electricity and digital infrastructure will become even more important. British Columbia must ensure it has the capacity to support growing industrial, commercial and technology sectors.
Maintaining fiscal responsibility and investment confidence
The government’s $142.1-billion spending commitment represents a significant investment in Canada’s economy. While infrastructure and productivity-enhancing investments can generate long-term economic benefits, it will be important to ensure public spending delivers measurable results.
SWRBOT encourages transparent reporting, effective project delivery and accountability for investments, particularly as the federal government continues to manage significant deficits.
3. SWRBOT’s Priorities Moving Forward
Building on the announcements in Budget 2026, SWRBOT encourages the federal government to continue advancing the following priorities:
- Transportation: Advance timely, effective solutions to regional transportation challenges, including improved traffic flow along Highway 99, Highway 1 and key goods movement corridors.
- Municipal infrastructure: Ensure rapidly growing communities receive funding for roads, water, sewer, transit and other infrastructure needed to support housing and economic development.
- Small business competitiveness: Make government grants, financing and technology adoption programs more accessible to SMEs.
- Workforce development: Expand employer-led apprenticeships, youth employment, skills training and partnerships with post-secondary institutions.
- Trade diversification: Continue strengthening port, rail, airport and intermodal infrastructure to improve access to international markets.
- Innovation and energy: Support AI adoption, research commercialization and reliable electricity infrastructure.
- Regulatory efficiency: Reduce unnecessary red tape, streamline approvals and improve coordination between levels of government to encourage investment.
Closing Perspective
Budget 2026 recognizes that Canada’s economic future depends on attracting investment, improving productivity, strengthening trade infrastructure and developing a skilled workforce.
For British Columbia, the major projects and investments identified in the budget present opportunities to strengthen our role in Canada’s trade and economic growth. For Surrey and White Rock, ensuring these investments translate into improved infrastructure, stronger businesses and new employment opportunities will be critical.
SWRBOT welcomes the federal government’s focus on economic competitiveness and encourages continued collaboration with businesses, industry and local governments to ensure that national investment commitments deliver tangible benefits for our region.
A thriving business community helps build a thriving region. When businesses can grow and compete, the benefits extend beyond the workplace – supporting better jobs, stronger household incomes and greater prosperity for individuals and families.
