Submission: 2026 Federal Pre-Budget Consultation

INTRODUCTION

Canada remains at a critical juncture requiring renewed focus on productivity, competitiveness and investment attraction. As outlined in the Calgary Chamber’s recent report, Infrastructure in Waiting, Canada’s challenge is not a lack of opportunity, but rather our inability to move projects forward at the speed and scale required to compete globally. Businesses across the country face aging infrastructure, regulatory complexity and rising costs that weaken productivity and investment attraction.  

Since Budget 2025, progress has been made, particularly in advancing internal trade discussions, signalling support for projects of national interest, maintaining investment tax credit frameworks and announcing significant regulatory reforms aimed at acerating major project development and improving investment certainty. These are positive signals for Canada’s investment environment. However, the gap between commitment and execution remains significant.  

Canada’s business community is central to addressing these challenges. From infrastructure and housing to decarbonization and trade expansion, businesses will drive economic growth, job creation and long-term prosperity.  

Budget 2026 is an opportunity to move from infrastructure in waiting to infrastructure in action, by accelerating implementation, improving policy certainty and ensuring Canada is positioned as a competitive destination for capital and talent. 

Our recommendations focus on five key priorities: 

• Eliminating regulatory barriers and unlocking competitiveness 

• Investing in trade-enabling infrastructure and international relationships 

• Enabling entrepreneurs to thrive in a global economy 

• Addressing workforce challenges through talent development and attraction 

• Strengthening communities to support resilience and well-being 

ELIMINATING REGULATORY BARRIERS AND UNLOCKING COMPETITVENESS

Canada has made important commitments to improving regulatory efficiency, streamlining approvals and advancing projects of national interest. Recent federal proposals to establish clearer timelines and a “one project, one review” initiative are encouraging steps toward improving competitiveness. The Calgary Chamber is particularly encouraged by the commitment to complete project reviews and decisions within one year, alongside efforts to coordinate impact assessments and permitting processes. 

However, regulatory timelines, policy uncertainty and overlapping approval processes continue to delay investment, strand projects and constrain productivity. Regulatory complexity has become a major barrier to building the critical infrastructure needed to support Canada’s long-term economic growth. The focus must now shift from commitment to implementation by reducing duplication and improving investment certainty.  

Recommendations 

1. Commit to fiscal prudence by balancing spending with saving for the future and reducing the federal debt and deficit. Ensure fiscal responsibility provides a stable and predictable economic environment to support growth and investment. 

2. Improve domestic policy by addressing regulatory burdens and restrictive tax structures impacting Canadian competitiveness. Evaluate corporate tax rates to ensure Canada is competitive with comparative jurisdictions, enables businesses to grow and supports the recycling of capital into new investment and business expansion. This should include implementing a permanent 100 per cent Accelerated Capital Cost Allowance (ACCA) for major projects that incentivize private capital investment and improve Canada’s competitiveness relative to the U.S. 

3. Implement and operationalize the proposed “one project, one approval” framework, including coordinated impact assessments, permitting processes and a single project authority through clear, time-bound regulatory processes across jurisdictions that reduce duplication and improve investment certainty.  

4. Continue advancing outstanding Canada-Ottawa MOU elements related to regulatory alignment, project approvals and economic corridor development to improve investment certainty and support nationally significant infrastructure project. 

5. Ensure timely, predictable and competitive access to clean economy investment tax credits (ITCs) and carbon contracts for difference to support investment in major infrastructure and decarbonization projects. 

6. Subject to the outcomes of ongoing consultation, provide funding and implementation support for the proposed Crown Consultation Hub to centralize Indigenous engagement, improve coordination across federal departments and consolidate overlapping permitting and consultation processes. 

INVESTING IN TRADE-ENABLING INFRASTRUCTURE AND INTERNATIONAL RELATIONSHIPS

Trade is foundational to Canada’s economy, but aging infrastructure, fragmented internal rules, rising costs and regulatory inefficiencies are limiting our global competitiveness. Recent federal commitments to establish economic zones and accelerate nationally significant infrastructure projects are positive signals that governments recognize the importance of trade-enabling infrastructure to Canada’s long-term competitiveness and economic security. 

Recommendations  

1. Designate and fund national and regional economic corridors, including projects such as Prairie Economic Gateway, while advancing federal economic zones and accelerating investment in trade-enabling infrastructure across ports, rail, pipelines, aviation and inland logistics hubs. This includes standing up the Canada Strong Fund to help finance nationally significant infrastructure that strengthens supply chains and Canada’s reputation as a reliable trading partner.  

2. Expand marine, air, east-west energy and transportation infrastructure to strengthen internal trade and reduce overreliance on any single export route or market. 

3. Accelerate the National Supply Chain Strategy and improve coordination across jurisdictions to reduce bottlenecks, strengthen continental supply chains and support domestic manufacturing and critical minerals development. 

4. Develop transportation and digital infrastructure, including broadband and 5G connectivity, in northern, Arctic, rural and remote regions to enhance sovereignty, economic opportunity and national security interests. 

5. Bolster Canada’s defence capacity and commit to a credible path toward meeting Canada’s NATO spending commitment, with a focus on dual-use investments that strengthen national security, supply chain resilience, critical infrastructure and long-term competitiveness. 

ENABLING ENTREPRENEURS TO THRIVE IN A GLOBAL ECONOMY

Despite a growing population, there are 100,000 fewer entrepreneurs in Canda than two decades ago. Rising costs, access to capital and lagging technology adoption are stifling growth, particularly among small and medium-sized businesses that make up over 99 per cent of Canada’s business community. To reverse this trend, the federal government must lower barriers to business success – by reducing financial pressure, expanding connectivity and technology supports and fostering a more competitive environment. Supporting entrepreneurs is essential to productivity, innovation and economic growth. 

Recommendations 

1. Continue advancing tax reform for small businesses must continue, particularly increasing the Small Business Tax threshold that provides incentives for businesses to grow and, at some point, recycle their capital into new ventures if they sell their business. The Small Business Tax threshold should be and indexed to inflation, and Employment Insurance premium rates for small businesses should be lowered. 

2. Reduce administrative burden and streamline access to federal funding and financing programs, including through expanded Canada Infrastructure Bank deployment, new financing tools such as infrastructure ITCs and flow-through mechanisms, and continued expansion of the Indigenous Loan Guarantee Program across sectors. 

3. Establish a coordinated national technology adoption strategy, including AI, digital infrastructure and connectivity investments, to support productivity, innovation and participation in the digital economy, particularly for rural and remote businesses.  

ADDRESSING WORKFORCE CHALLENGES THROUGH TALENT DEVELOPMENT AND ATTRACTION

Despite having one of the most well-educated populations in the OECD, Canada continues to face persistent gaps between available talent and labour market demand, particularly in sectors critical to infrastructure development, housing, energy, construction and advanced technologies. At the same time, Canada’s unemployment rate remains elevated at 6.7 per cent, while businesses continue to report difficulty filling in-demand roles, highlighting persistent labour mismatches.  

The Calgary Chamber is encouraged by recent federal commitments through the Team Canada Strong initiative to recruit, train and hire additional skilled trades workers to support nation-building projects and strengthen Canada’s workforce capacity. To strengthen competitiveness, Canada must ensure its workforce development, immigration and credential recognition systems are aligned with economic priorities. Government and industry must work collaboratively to improve labour mobility, accelerate workforce participation and ensure businesses have access to the skilled workers needed to deliver projects, drive innovation and support economic growth. 

Recommendations: 

1. Advance credential recognition reform, labour mobility and workforce integration initiatives to strengthen labour force participation, address skills mismatches and support sectors facing persistent labour shortages.  

2. Improve immigration system efficiency and align programs with labour market needs, including modernizing the Temporary Foreign Worker Program, increasing provincial nomination flexibility, reducing administrative barriers and ensuring timely visa and Labour Market Impact Assessment processing. 

3. Increase support and funding certainty for settlement agencies to ensure newcomers can fully participate in Canada’s economy. As communities experience increased secondary migration, settlement organizations require stable funding to support housing, employment, language training and broader community integration, particularly in rural and remote communities. This includes reinstating and expanding funding for ESL programming to address growing demand and lengthy waitlists. 

4. Better align immigration, housing and infrastructure planning to support sustainable population growth and long-term economic competitiveness across urban, rural and remote communities. 

STRENGTHENING OUR COMMUNITIES TO SUPPORT RESILIENCE AND WELL-BEING

Strong communities are essential to economic growth, workforce participation and investment attraction. Businesses and workers depend on affordable housing, reliable infrastructure and safe, connected communities. As Canada’s population continues to expand, demand for housing and infrastructure is outpacing municipal capacity. The Calgary Chamber is encouraged by recent federal investments through the Canada Builds Communities Strong Fund to support housing-enabling and community infrastructure. However, gaps remain in delivery, coordination and scale. Aging infrastructure, lengthy permitting timelines, rising construction costs and increasing pressure on municipal services continue to constrain growth and reduce quality of life. 

Furthermore, nearly half of small business owners (49 per cent) report being worried about the safety of themselves, their employees and their customers, up five per cent from 2024 and more than double the rate from 2023; targeted support is needed to improve community safety. Addressing these challenges will require coordinated action across all orders of government to ensure communities have the infrastructure, services and resilience needed to support population growth, and overall well-being and safety. 

Recommendations: 

1. Accelerate housing supply through targeted investments in housing-enabling infrastructure, streamlined approvals and funding programs that support growth in both urban and rural communities. 

2. Establish a dedicated Urban Infrastructure Renewal Fund to support upgrades to water, roads, transit, utilities and other critical infrastructure in Canada’s major cities, helping modernize aging infrastructure, reduce backlogs and support economic growth.  

3. Invest in transportation and connectivity infrastructure, including public transit, airport access and regional transportation links, to improve mobility, strengthen tourism and support regional economic growth. This includes continued support for projects such as the Green Line LRT. 

4. Building on recent federal investments supporting sport and stronger communities, unlocking funding for infrastructure essential to sport, entertainment, arts, culture and tourism, recognizing vibrant communities support talent attraction and downtown revitalization. This includes support for catalytic projects such as the Arts Commons Transformation project, the Olympic Oval and the proposed Field House. 
5. Provide stable funding for disaster mitigation, climate adaptation and wildfire preparedness infrastructure, while strengthening protections for critical infrastructure and supporting small businesses through grants for safety and crime prevention measures. 

About the Calgary Chamber of Commerce  

The Calgary Chamber exists to empower our business community to advance a prosperous Calgary and Canada. 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.