Budget 2026: What it means for business and downtown Victoria

VICTORIA, BC — The Greater Victoria Chamber of Commerce says Budget 2026 reflects the province’s difficult fiscal reality and raises concerns about business confidence, downtown recovery, and long-term economic growth in the region.

With British Columbia facing a deficit of $13.3 billion by fiscal year 2026/27, the Chamber says more needs to be done to control government spending. Economic growth driven by a strong private sector must be central to the province’s path forward.

“You can’t cut your way out of a deficit,” said John Wilson, CEO of the Greater Victoria Chamber of Commerce. “A strong business environment and a vibrant downtown are essential to creating jobs, generating tax revenue, and funding the public services people rely on.”

Budget 2026 shows that provincial spending has grown by almost 40% from 2021/22 to 2026/27. In comparison, revenues have increased by 18%, contributing to an imbalance where debt‑servicing costs now amount to approximately $1,147 per person per year. New business taxes and costs include expanded PST on professional services and represent a new cost for nearly all businesses. This is a time when businesses are desperate for support. These new taxes represent $550 million in the form of PST changes.

Without stronger economic growth, the province’s difficult fiscal reality will only intensify.

The Chamber reiterated that downtown Victoria remains critical to the region’s economic health, and its continued recovery must be a priority.

“When downtown is strong, businesses invest, people are employed and government revenues are stronger,” said Wilson. “When downtown struggles, the ripple effects are felt across Greater Victoria.”

The Chamber continues to call for:

• Tax relief and support for businesses
• More visible safety presence downtown
• Faster access to mental health and addiction treatment
• Actions that encourage people to come back downtown

The Chamber represents businesses, non-profits and community organizations and will continue working with partners across government, public safety and community services to support a vibrant downtown Victoria.

 

Media Contact: 
Jim Zeeben, Communications Director
Greater Victoria Chamber of Commerce
communications@victoriachamber.ca