Ballooning provincial deficit makes it difficult for business community

British Columbia’s deficit continues to rise annually and the financial pinch is intensifying through rising costs for small and medium-sized business. Candidates in the upcoming provincial election discuss their plans to make it more affordable.

Has the Cost of Doing Business Become Unsustainable?

On October 24, British Columbians will head to the polls to vote in the provincial election. Decisions made in Victoria play a significant role in how small and medium businesses in the Greater Nelson operate, and ultimately succeed. 

With campaigns now in high gear, we reached out to the four candidates in the Kootenay Central riding to see what they are thinking about specific issues impacting our region’s business community. 

Below you will find the answers to our second question: 

The Provincial Government is projecting a $13.3 billion deficit for the 2026-2027 fiscal year with small decreases to that total in the two subsequent periods. Election promises being pushed during this campaign involve further spending. In light of this challenging fiscal outlook for the province, what is your party’s platform as it relates to the small business sector given that the rising cost of doing business (taxation, insurance, red tape, tariffs, shifting consumer practices) is also on the rise?

The British Columbia provincial election takes place on October 24, 2026. On final voting day, the polls will be open from 8 am to 8 pm. There are several voting stations set up throughout our region and most residents should have received an Elections BC cards in the mail. 

If you want more information on where to vote, what you need to bring and how to register, head to the Elections BC website.

Brittny Anderson – BC NDP

The Provincial Government is projecting a $13.3 billion deficit for the 2026-2027 fiscal year with small decreases to that total in the two subsequent periods. Election promises being pushed during this campaign involve further spending. In light of this challenging fiscal outlook for the province, what is your party’s platform as it relates to the small business sector given that the rising cost of doing business (taxation, insurance, red tape, tariffs, shifting consumer practices) is also on the rise? 

Kootenay Central BC NDP candidate Brittny Anderson.

We’ve been through a lot lately, including the Covid-19 pandemic where we supported small businesses to keep their doors open, and now with Trump attacking our jobs and our economy. Every province has budgeted deficits this year, in the face of Trump’s trade war and global instability from events like his Iran war driving up costs, but BC has maintained one of the lowest debt-to-GDP ratios among the provinces. That’s why our government is working with Mark Carney as a team to stand up to Trump and protect our jobs, economy, and people. 

Despite these incredibly challenging circumstances, the BCNDP has been investing in small businesses. Locally, businesses including Spearhead, Whitewater, and Kalesnikoff have received support, along with non-profits like the Cube Climbing Gym in Nelson. We’ve also been hard at work finding new markets for B.C. businesses. And it’s working – exports to non-US destinations are up 16% this year and we’ve gained over 300,000 jobs since 2017, including 146,000 in the private sector. BC has also had the fastest-growing GDP in the country since 2017. 

But we know there is more work to be done, especially as Trump’s trade war drags on. That’s why we’re opening new markets for BC products, including new supports for small businesses; buying BC first, so public dollars create jobs here; providing direct financial relief for small businesses through interest-free loans; providing a new hiring incentive for young people through a refundable tax credit for small businesses; and why we have $130 billion in major projects on the way, more than any other province. We’ve also made a historic $241 million investment into skilled-trades training, the first major increase in nearly two decades. 

We’re not going to make people pay the price for the trade war. The Conservatives would undermine Team Canada and allow Trump to take advantage of us and our economy. 

Nicole Charlwood – BC Green Party

I have an honours degree in economics and served as a financial officer for Elections Canada through three federal elections. I take a $13.3 billion deficit seriously, and so should every party asking for your vote.

Kootenay Central BC Green Party candidate Nicole Charlwood.

Part of the problem is spending. A bigger part is that the province isn’t collecting what it is owed. This year’s budget overstated natural gas royalties by $1.46 billion over five years. BC now expects more revenue from lottery tickets and liquor than from the gas we all own. Small businesses should not be asked to cover that gap.

The BC Greens’ costed platform pays for its commitments by asking the very wealthiest and the most profitable corporations to pay their fair share. That means:

• a royalty framework that captures the intended share of oil and gas profits
• a windfall tax on extraordinary corporate profits
• a tax on wealth above $50 million

Under our plan, nobody who works for an income pays a dollar more in tax. I’ll also push for an independent budget officer to check revenue forecasts before a budget is tabled, so errors like the royalty mistake are caught early.

For small business, our priorities are practical:

• Commercial rent protections, so a lease renewal doesn’t wipe out years of work.
• One front door for permits. Submit once, and ministries coordinate behind the scenes. That is real red-tape reduction.
• Keeping businesses local. When an owner retires, employees and the community get the first chance to buy, with financing to make it work. We shouldn’t lose those businesses to closure or outside buyers.
• Fixing the rural download. A predictable revenue-sharing formula for municipalities eases the pressure on commercial property taxes.
• Workers who can afford to live here. Non-market housing and $10-a-day child care help you hire and keep staff.

Tariffs and shifting consumer habits make keeping dollars circulating locally more important than ever. Our community wealth-building approach does exactly that.

I’m the candidate who lives here. I’ve served on Nelson City Council; I know this business community, and I’ll answer to it, not to a premier. Small business drives this riding’s economy, and it will have a strong voice in Victoria.

Hunter Corrigal – OneBC

OneBC is a fiscally conservative party. We believe in reasonable spending and responsible management of deficits and debt. We will not pass today’s bills down the line for our children to pay. 

Kootenay Central OneBC candidate Hunter Corrigal.

The challenge is serious. The province’s September quarterly update raised the projected 2026– 27 deficit to about $13.8 billion, and taxpayer-supported debt is projected to reach $189 billion by 2028–29. Every dollar spent on interest is a dollar unavailable for health care, education or tax relief. 

At the same time, small businesses are carrying more: taxes, insurance, red tape, and shifting consumer habits. Budget 2026 extended the PST to selected professional services and raised the lowest personal income tax rate. That is the wrong direction for the people who create local jobs. 

OneBC’s platform for small business: 

• Lower taxes: a 25% reduction in provincial personal and corporate income tax rates, and a two-point cut to the PST, from 7% to 5%. A lower PST helps local retailers compete and leaves more money in customers’ pockets. 
• Cut red tape: a full audit of provincial regulations, keeping the rules that protect people and removing the ones that only add cost and delay. 
• Balance the budget: a path to balance within four years, starting with a full review of spending that targets administration and duplication first, with future surpluses directed to paying down debt. 
• Attract investment: remove the legislative barriers that discourage investment. Investors look for stability, consistency and openness to development, and B.C. must offer all three. 

We also owe voters transparency. I will push for a published, costed four-year plan with progress reported regularly, so you can hold us to it. 

As a small business owner and an employee myself, I know these pressures firsthand. Our goal is to give people and businesses more power and control to invest in what matters to them, rather than having government decide for them. 

Gordon Skulnec – Conservative Party

I believe fiscal responsibility begins with accountability and transparency. Taxpayers deserve to know how their money is being spent and whether they are getting value for it. With BC now facing a projected $13.8 billion deficit, we cannot continue down a path of ever-increasing spending without a clear plan for economic growth and fiscal sustainability. Small businesses are the backbone of our communities, yet rising taxes, insurance costs, regulatory burdens, and economic uncertainty are making it increasingly difficult for them to succeed.

Kootenay Central Conservative party candidate Gordon Skulnec.

The Conservative Party of BC has committed to not increasing provincial taxes and to raising the basic personal income tax exemption from $13,216 to $32,000. This would leave more money in people’s pockets to spend in our local economy. Our party also plans to eliminate the PST on qualifying investments in machinery, equipment, and business software for three years, while reducing unnecessary regulations and speeding up approval processes.

I believe we need to grow our economy rather than continually look to taxpayers for more revenue. Revitalizing our natural resource industries, particularly forestry, will create well-paying jobs, strengthen our tax base, and support the many local businesses that depend on a healthy regional economy. But my responsibility as MLA would be to ensure these policies translate into real opportunities for businesses here in the Kootenays.

I would work directly with the Nelson and District Chamber of Commerce, local business owners, and regional economic development organizations to identify the regulatory obstacles and provincial policies holding businesses back. I would advocate for faster provincial permitting processes, reduced administrative burdens, and greater support for workforce development and housing affordability, which directly affect businesses’ ability to attract and retain employees. I would also push for greater scrutiny of government spending, ensuring that existing resources are used effectively before asking taxpayers for more. Our region has tremendous economic potential, from forestry and agriculture to tourism, construction, and small business innovation. We need a government that encourages investment, supports entrepreneurship, and recognizes that a thriving private sector is essential to funding the public services we all depend on.

My commitment is to be a strong voice for our local businesses in Victoria and to advocate for policies that make it easier to invest, hire, and grow right here in the Kootenays.

Learn more about the Nelson & District Chamber of Commerce here.