Business Leaders Demand Support in Upcoming Federal Budget

Business leaders in Canada are calling for a comprehensive approach in the upcoming federal budget, scheduled for November 4, 2025. They emphasize the need for government support to enhance the investment climate, provide tax relief, and improve access to capital. With the nation facing significant economic challenges, including the impact of U.S. tariffs, the business community believes that prioritizing these areas can foster growth and ultimately strengthen Ottawa’s fiscal position.

The Business Council of Canada has voiced concerns regarding the increasing competition for capital in a globalized economy. According to Theo Argitis, senior vice-president of policy at the council, initiatives that encourage private sector investment are crucial. “We want to see initiatives that bring the private sector back into the economy and investing in the economy,” Argitis stated. He underscored the necessity for measures that reduce uncertainty and create a more favorable environment for business investments.

As the Liberal government prepares to unveil the budget, the parliamentary budget officer has projected a considerable rise in the annual deficit, estimating it will reach $68.5 billion this year, up from $51.7 billion the previous year. This increase raises questions about the government’s capacity to meet the various demands of the business community while adhering to fiscal restraint.

Dan Kelly, president of the Canadian Federation of Independent Business, highlighted the need for broad-based tariff relief measures. He criticized the multitude of existing business subsidy programs, suggesting they often fail to deliver meaningful results. “We’ve always felt that broad-based tax relief and regulatory relief would have much greater economic impact than a host of government programs,” Kelly remarked. He noted that small businesses have suffered due to recent changes in U.S. policy, particularly the elimination of the de minimis exemption, which previously allowed low-value packages to ship without duties.

For the tech industry, access to capital remains a priority. Benjamin Bergen, president of the Council of Canadian Innovators, called for reforms to the federal government’s Scientific Research and Experimental Development tax incentive program. Bergen stated that the program needs to be more streamlined to effectively support domestic firms, rather than benefiting foreign multinationals. “We’re hoping to see some major overhauls in reform there on that access to capital side,” he said.

Additionally, Bergen expressed interest in how upcoming defense spending plans will be implemented. Following a NATO summit in June, Canada agreed to increase its defense spending target to five percent of annual gross domestic product by 2035. The council is advocating for domestic procurement strategies that could bolster the local technology sector. “The question here really is, how is that money going to be spent?” Bergen asked, emphasizing the importance of fostering a domestic defense technology industry.

The Mining Association of Canada has also submitted recommendations to the Department of Finance, urging the government to strengthen the mining sector. Their proposals include increasing and streamlining capital funding for mining projects and enhancing Indigenous participation in the industry. “Capital funding for mining projects should be increased, streamlined and made more accessible,” their letter stated.

Despite these calls for support, a renewed focus on mining and resource-based initiatives has faced criticism. On September 20, protests erupted in several Canadian cities, with demonstrators expressing concerns over climate change and the environmental impacts of such projects.

The upcoming budget also coincides with the renegotiation of the Canada-United States-Mexico Agreement, which is set for review next year. While most Canadian goods are shielded from U.S. tariffs, specific duties on steel, aluminum, autos, and softwood lumber continue to adversely affect those sectors. Argitis emphasized the importance of this trade agreement, stating that its renegotiation may hold more significance than any individual budget item.

As the government prepares to release its fiscal blueprint, business leaders are keenly awaiting the measures that will be introduced to address their concerns and stimulate economic growth in the face of ongoing challenges.