Budget 2025 signals support for Alberta amid high economic uncertainty

Calgary, AB, February 27, 2025 – Tabled amid heightened economic uncertainty, Budget 2025 sends a positive signal to Albertans and the business community with key investments in both industry and public services while maintaining a cautious contingency to offset impacts from potential tariffs on our exports.

Specifically, the Calgary Chamber is pleased to see key investments to build new homes, improve market access for agriculture and agri-food products and continue efforts to decarbonize. However, Budget 2025 falls short of supporting small businesses, investing in workforce training, particularly for students, and addressing interprovincial trade barriers.

“We remain unsure of the magnitude, timing and targets of the tariffs – all of which put the government in a difficult position from a budgeting perspective. Simply, there are too many undefined variables. That said, the budget does focus on addressing some areas within our control, including investing in key initiatives to strengthen our economy while preparing for a rocky road ahead,” says Deborah Yedlin, President & CEO at the Calgary Chamber of Commerce. “Yet businesses – particularly small businesses – still face mounting challenges. More support is needed to help them navigate rising costs, expand workforce training opportunities, adopt technology and remove barriers to interprovincial trade so Alberta can remain a leader in business and innovation.”

In our budget submission to the provincial government, we called for four key priorities to support Alberta’s businesses and economy: support for small businesses; ensuring a stable and predictable policy environment; investments in housing, transit and supply chain infrastructure; and support for workforce development.

Aligned with those priorities, we are pleased to see:

• Investments to support housing affordability, including $1.1 billion over three years to enhance affordable housing and social supports across the province.
• The personal tax break to support affordability for Albertans, increasing spending power and consumer ability to support local businesses.
• Commitments to improve the credential recognition process for workers from provinces and countries with similar standards.
• Investments in carbon capture and decarbonization projects through the Alberta Carbon Capture Incentive Program and the Petrochemicals Incentive Program.
• Continued support for the Alberta Film and Television Tax Credit.
• Funding to expand market access in agriculture, and advance economic diversification through the Alberta Investment and Growth Fund.
• Targeted funding for additional seat capacity in specific programs at post-secondary institutions.

We are also pleased to see an increase of $2 billion for the budget contingency to manage the threat of potential U.S. tariffs. We look forward to working closely with the Alberta government on behalf of businesses to provide input and ensure clarity on the specific supports rolled out for businesses and workers.

At the same time, we would have liked to see:

• A reduction to the small business tax and insurance premium tax rate. Businesses have consistently stated costs as their primary concern. Reducing these taxes as well as keep much needed capital in the hands of businesses owners to expand and innovate, particularly during the current economic uncertainty.
• The Summer Temporary Employment Program, Canada-Alberta Job Grant be reinstated. Collaboration with the federal government to support programs like these is critical to get youth engaged in the workforce.
• Increases to operating grants for post-secondary institutions accounting for rising inflation and enrollment.
• Targeted and actionable measures to address interprovincial trade barriers, noting the significant burden they place on businesses of all sizes. 

We recognize this budget was created in an uncertain geopolitical and financial environment and the looming threat of tariffs places extreme pressure on Albertans, businesses and government revenues. Despite this, the government is delivering the long-awaited income tax cut, keeping money in the pockets of Albertans. The deficit presented by this budget includes a large contingency to manage the threat of tariffs, and we look forward to working closely with the government on potential measures to insulate Albertan workers and businesses from these threats.

“Budget 2025 comes at a pivotal moment for Alberta’s economy. As we face both opportunities and challenges, clarity, confidence and collaboration between government, business, educational institutions and communities will be essential,” says Yedlin. “This budget sets a direction, and ongoing partnership is needed to provide the stability and bold action required to secure Alberta’s long-term prosperity.”

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About the Calgary Chamber of Commerce

The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.

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