Budget Priorities 

The Government of Alberta’s strong financial management creates an opportunity to invest in five key areas that will establish a more competitive, innovative and prosperous business condition in Alberta. 

1. Strengthen our attractive and competitive business environment

A competitive business environment is essential for attracting talent, fostering entrepreneurship, securing investments, and driving innovation.Alberta’s business environment outperforms nationally, but much can be done to improve its global attractiveness and competitiveness. 

• Eliminate the small business tax. Eliminating Alberta’s 2% small business tax would improve affordability and align our competitiveness with neighboring provinces, such as Saskatchewan (1%) and Manitoba (0%). This measure would save Edmonton small businesses $68 million annually, enabling reinvestment, hiring, and local spending. These savings allow our business community more opportunities to hire Albertans, reinvest in their business, or increase spending in the local economy. 
• Reducing barriers to internal trade. Alberta’s regulatory framework for interprovincial trade is already strong. Improving mutual recognition of registration for worker’s compensation, health and safety rules, and labour mobility for licensed professionals will facilitate greater trade with businesses. The Business Council of Alberta estimates the province would yield $1.9 billion in additional tax revenues by reducing interprovincial trade barriers. 

• Enhance the Alberta Petrochemical Incentive Program. Expanding the definition of “eligible capital”, extending project completion deadlines for eligible projects, and fast-tracking payment schedules for projects valued at over $150 million to two years, would improve the attractiveness of APIP. 

2. Foster regulatory certainty and efficiency

Regulatory certainty and efficiency provide businesses and investors with a stable environment, reducing risks and fostering long-term planning and investment. Clear and streamlined regulations enable smoother operations, lower compliance costs, and encourage business growth and innovation. 

• Balance financial and policy implications of regulatory changes. Alberta’s affordability and tax benefits are key advantages, but recent regulatory changes have raised costs for municipalities, causing financial instability and higher property taxes for businesses. The province must carefully balance financial and policy implications before introducing legislation that impacts affordability or creates uncertainty for businesses. 

• Support business expansion into domestic and international markets. In 2023, 87% of Alberta’s $175 billion in exports went to the United States. A shift towards protectionist policies highlights the need to mitigate potential impacts and broaden Alberta's trade relationships. The province should invest in both domestic and international trade accelerator programs to boost local GDP and mitigate international trade risks. 

• Create a longer-term fiscal plan. Build on the province’s strong fiscal management approach by adopting a fiscal anchor and long-term plan that is committed to reducing taxpayer-supported debt and investing future surpluses. The plan should include clear definitions, performance measures, and reporting, including clearly defined uses of funds (e.g. Alberta Heritage Savings Fund).

3. Focus on labour development and productivity

Focusing on labor development and productivity boosts business efficiency, innovation, and competitiveness, ensuring manageable growth. It also strengthens the economy by enhancing the workforce's skills, leading to higher wages, improved standards of living, and increased overall output. 

• Reinstate the Canada-Alberta Jobs Grant. Alberta businesses relied heavily on the Canada-Alberta Job Grant that was suspended earlier this year due to federal funding reductions. 53% of businesses surveyed by the Edmonton Chamber indicated they will reduce planned training without this support. It is imperative that the province reinstate this program, or create a made-in-Alberta equivalent, to support businesses
• Incentivize technology adoption in small businesses. Artificial intelligence, automation, robotics, and other technologies are transforming businesses. To remain competitive, the province should incentivize technology adoption in small businesses by creating a new technology adoption grant or tax incentive. This would replace the Canada Digital Adoption Program that expires in March 2025
• Maintain a focus on productivity. Statistics Canada recently reported that Canada’s productivity is 4.5% lower than in 2019, emphasizing a persistent and widening productivity gap with peer countries. Alberta should build on the success of its Productivity Summit by developing a comprehensive strategy and targeted investments that enhance productivity in local businesses.

4. Invest in municipal infrastructure and revitalization

Investing in municipal infrastructure and revitalization enhances the quality of public services, attracts businesses, and improves the overall business environment. It fosters economic growth by creating jobs, increasing property values, and boosting productivity through improved transportation and utilities. 

• Reinstate funding for the Grant-in-Place of Taxes (GIPOT) Program. The City of Edmonton, like other municipalities in the province, is facing increased cost pressures and challenges to financial sustainability. The province should reinstate full GIPOT funding retroactive to 2019 and commit to 100% ongoing support to help reduce ongoing tax levy increases, providing vital relief for businesses and residents facing an affordability crisis. Immediate action is needed to restore fairness for residential and non-residential taxpayers.
• Addressing public safety concerns. Edmonton businesses are increasingly concerned about public safety and social disorder. We commend the province for investing in 50 additional Edmonton Police Services officers, providing enhanced funding for local Police and Crisis Teams (PACT), and opening a local Navigation Centre. We urge the government to build on the successful Alberta Recovery Model by advancing other solutions that alleviate public safety concerns, such as opening the previously announced Recovery Centre in Edmonton, and investing further in local bridge and transitional housing. 
• Develop a strategy for municipal infrastructure investment. Municipalities across the nation are struggling to address population growth alongside aging infrastructure. By 2007, decades of unstable government investment had led to a national infrastructure deficit of $123 billion (renewal) and $115 billion (growth). The province must prioritize working with all orders of government to develop a long-term strategy that addresses the growing infrastructure deficit and provides stable funding for municipal infrastructure growth and renewal. 

5. Support Edmonton’s growth as a global hub

Supporting Edmonton to achieve its full potential is vital for businesses and the economy as it strengthens the city's role as a hub for innovation, commerce, and talent. A thriving Edmonton fosters economic growth, attracts investments, and creates new opportunities, benefiting both local businesses and the broader region. 

• Connect downtown Edmonton to the airport. As part of the passenger rail master plan, a $25 million investment should be prioritized to create a direct rail connection between downtown Edmonton and the Edmonton International Airport. This will improve efficiency, reduce congestion, and support economic growth by enhancing connectivity for residents, businesses, and visitors
• Co-create a Downtown Attainable Housing Fund. The province should collaborate with all orders of government to create a $100 million Downtown Attainable Housing Fund. This fund would help address the growing need for affordable housing in Edmonton’s downtown core, supporting essential workers and families. This will ensure a vibrant, more attractive city while boosting economic growth in the heart of Alberta’s capital city. 
• Invest in a strategic economic development plan for Edmonton. Calgary has secured significant investment and successfully positioned itself as a global city, but Edmonton has yet to reach its full potential. The province should contribute to a long-term economic development strategy that renews Edmonton’s vision, defines its comparative and competitive advantages, and repositions the city as a top 100 global city. Building on the City’s Economic Action Plan, and developed in collaboration with business, community, and municipal leaders, this strategy would drive growth and attract the investment needed to help Edmonton achieve its full potential.