Canadian Federal Budget 2024: A Perspective from the London Chamber of Commerce

Canadian Federal Budget 2024: A Perspective from the London Chamber of Commerce

On April 16, 2024, the Government of Canada unveiled its 2024 Federal Budget, outlining a roadmap for economic recovery and growth amidst ongoing challenges. As policy experts from the Canadian Chamber of Commerce dissect the implications of this budget for Canadian businesses, the London Chamber of Commerce stands ready to assess its impact on the local business landscape.

General Outlook

The budget's unveiling didn't reveal many surprises; rather, it reinforced the government's pre-announced major spending initiatives. The London Chamber was pleased to see some positive strides including a focus on streamlining interprovincial trade however we remain concerned that there is no concrete strategy to bolster productivity and reignite economic growth, areas where Canada continues to lag behind global competitors.

Capital Gains and Tax Policies

The Chamber opposes measures that may exacerbate existing economic challenges, particularly given the current climate. Increases in capital gains taxes risk stifling the success of Canadian businesses, dampening opportunities for growth, and hindering job creation.

Digital Services Tax

Further, we were disappointed to see the federal government double down on the punitive Digital Services Tax. If enacted, the potential ripple effects will impact many small and medium-size Canadian businesses.

Housing and Infrastructure

While steps toward housing affordability are encouraging to see, further measures are deemed necessary to unlock the full potential of the housing market. Initiatives like the Canada Housing Infrastructure Fund are steps in the right direction, yet enabling the private sector to drive capital allocation remains a critical component in achieving sustained progress.

International Trade

The Chamber welcomes commitments to bolster international economic engagement, including the renewal of the Canada-U.S. Energy Transformation Task Force. However, to position Canada as a more formidable player on the global stage we will need to pursue a more ambitious and cohesive international trade agenda.

Transportation Infrastructure and Labour

There are critical gaps in the budget pertaining to transportation infrastructure planning and labour stability. Resolving these issues is paramount to bolstering Canada's economic competitiveness and reinforcing its reputation as a reliable trading partner.

Small Business Support and Innovation

The introduction of the New Canada Carbon Rebate for Small Business and the EV Supply Chain Investment Tax Credit are positive steps toward supporting SMEs and driving innovation. However, ongoing consultation and refinement are essential to ensure these measures effectively address the needs of businesses navigating challenging market conditions.

Conclusion

As the London Chamber of Commerce reflects on the implications of the 2024 Federal Budget, it remains committed to advocating for policies that foster economic resilience, empower local businesses, and drive sustainable growth. Collaborative efforts between government and industry stakeholders are essential in charting a course toward prosperity and competitiveness.