B.C. Conservative Leader John Rustad is flanked by candidates as he speaks during a campaign stop at the University of British Columbia in Vancouver, after releasing the party's election platform on Oct. 15.DARRYL DYCK/The Canadian Press
British Columbia’s Conservatives have released their policy platform just days ahead of the election, putting a price tag on spending increases and tax cuts, while banking on long-term economic growth to return the province to prosperity.
BC Conservative Leader John Rustad has made fiscal management a key issue in the campaign, accusing the NDP government of driving away investment with red tape and high taxes. Under his plan, announced Tuesday, the Conservatives would increase government spending by $1.1-billion while reducing revenues with $1.5-billion in tax cuts in the next fiscal year.
But the party says it would return the province to a balanced budget within eight years, with expectations of a supercharged economy that grows much faster than current forecasts.
“We need to be able to overcome the seven years of devastation that we’ve seen under the NDP, the sea of red ink that we have in this province, and nothing to show for it,” Mr. Rustad told reporters when he introduced his platform for Saturday’s election.
Business leaders in the province have been publicly muted in their criticism of the NDP. But privately, they complain that Mr. Eby’s government has stifled economic growth. Mr. Rustad, whose party earned less than 2 per cent of the popular vote in the 2020 election, emerged as the “free-enterprise” champion after the Opposition BC United faltered in public support this year – subsequently suspending its campaign and endorsing the Conservatives.
(Members of the business community had leaned on BC United to drop out, arguing it would improve the odds of unseating the NDP, which is now in a close race with the Conservatives.)
The economy in B.C. is forecast to grow by less than 1 per cent this fiscal year, and is actually shrinking when accounting for population growth. (Canada, as a whole, has fared similarly.) The NDP, in their platform, are forecasting economic growth to rise in the coming years to 3.1-per-cent growth, in part owing to plans to boost the mining sector. The Conservatives say their plan will drive economic growth to a rate of 5.4 per cent.
Both the NDP and Conservative forecasts are ambitious: The Conference Board of Canada expects growth in the province to average 2.1 per cent in 2027 and 2028.
The Conservatives say they would double production of liquefied natural gas and attract international investment to capital-intensive industries such as manufacturing: “B.C. has developed a reputation for hostility to investment, and it’s harming our future,” the platform states.
Tuesday’s release do not include any new promises, as the Conservatives have rolled out more than 100 commitments since the campaign began. But what is included, for the first time, are estimates of the financial implications of those announcements added together.
The main tax cuts include a plan to eliminate the province’s carbon price at a cost to the treasury of $3-billion once fully implemented. However, that tax cut wouldn’t be delivered until a federal election is called to prevent the federal Liberal government in Ottawa from imposing a national carbon tax in place of the provincial one.
As well, the B.C. Conservatives have promised what they call the “Rustad rebate,” which is set to deliver relief to renters and homeowners starting in 2026 in the form of an income-tax deduction. As well, they would cut the small business tax to 1 per cent in that year, down from 2 per cent.
On the spending side, the Conservatives would maintain the health care spending increases that the NDP budget forecasts. Major new spending commitments include $1.1-billion to deliver infrastructure upgrades to cities, and $580-million for each of two years to fully fund TransLink, the public transit authority for B.C.’s south coast communities.
The Conservatives have also outlined a long list of major capital projects worth billions of dollars including a new children’s hospital in Surrey. However Mr. Rustad said he cannot provide costs associated with those projects because there are no business plans yet.
B.C.’s fiscal forecasts can shift because of many external factors that heavily influence the province’s economy, such as international lumber prices and interest rates. In an interview, Mr. Rustad acknowledged that for those reasons, his proposed plans may have to change. But he said the promised tax relief will be delivered.
“Our priority for our budgeting going forward is to be able to provide the relief for the people,” he said. “Second priority is to make sure our services are protected, and getting our economy going. If it takes longer to balance, it may take longer to balance, but I’m pretty confident that over two terms, we’ll be able to return ourselves to a surplus situation.”