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London Chamber of Commerce Response to the Fall Economic Statement (FES)
The London Chamber of Commerce echoes the concerns of Canada’s business community regarding the federal government’s Fall Economic Statement (FES). At a time when businesses and families are grappling with profound economic uncertainty, the government’s lack of a comprehensive plan to address the growing deficit and restore economic prosperity is deeply troubling.
Fiscal Accountability is Paramount
A deficit of nearly $62 billion for the 2023-24 fiscal year, far exceeding the $40 billion forecast in Budget 2024, highlights a concerning trend of fiscal mismanagement. Businesses and households alike understand that operating in the red year after year is unsustainable. Yet, the government continues to expand its fiscal obligations without setting aside funds for contingencies or addressing the long-term risks of this approach.
The government must act swiftly to demonstrate fiscal accountability and stability. Without it, Canada risks losing the confidence of investors and businesses critical to our economic growth and prosperity.
Navigating U.S. Trade Challenges
The looming tariff threats posed by the U.S. administration present the greatest external risk to Canadian businesses. From manufacturers to farmers, the economic implications of strained trade relations with our largest trading partner are vast. The $1.3 billion investment in border security is a step in the right direction, signaling the government’s recognition of this critical issue. However, much more needs to be done to safeguard Canadian exports, jobs, and our global competitiveness.
We urge the federal government to work closely with the business community to navigate these challenges, mitigate risks, and ensure our economic security. Strengthening trade ties and bolstering supply chain resilience should be top priorities.
Productivity and Competitiveness
Canada’s economic challenges are compounded by a decade of weak productivity and declining GDP per capita. To reverse this trend, the government must prioritize policies that encourage private-sector investment and drive economic growth. While measures like the reinstatement of the Accelerated Investment Incentive are welcomed, mixed signals—such as potential increases to the capital gains inclusion rate and a digital services tax—undermine investor confidence.
Canada cannot afford to lose more businesses, investment, and well-paying jobs to other markets. The government must adopt a cohesive strategy to attract and retain investment, support innovation, and strengthen our competitive position globally.
Addressing Housing Affordability
Housing affordability remains a critical issue. While some measures in the FES aim to address the crisis, they fail to tackle the root causes. With the investment required to restore affordability surpassing $1 trillion, enabling the private sector to build at scale is essential. Access to capital, coupled with reduced taxes and charges, is the only viable path forward.
International Leadership and Trade Resilience
As Canada prepares to assume the G7 Presidency, the absence of an ambitious international trade and investment agenda in the FES is a missed opportunity. While measures to enhance supply chain resiliency are important, they must be implemented in partnership with industry to minimize unintended consequences for businesses reliant on international trade.
Call to Action
The London Chamber of Commerce calls on the federal government to chart a clear and actionable course to address these pressing issues. Fiscal accountability, robust trade strategies, and a commitment to fostering business investment and innovation are essential to securing Canada’s economic future. Without decisive action, we risk losing the prosperity that supports our families, businesses, and communities.
The London Chamber remains committed to working with government and stakeholders to advance policies that strengthen Canada’s economic foundation. We stand ready to collaborate in addressing these challenges and ensuring a stable and prosperous future for all Canadians.
