2021 Federal Budget Released
April 19, 2021 — Today, federal Minister of Finance Chrystia Freeland released the 2021/2022 federal budget, outlining the plans for government taxes and spending.
Below, read the Burnaby Board of Trade’s highlights of some of key announcements in the budget, plus access further resources and analysis on what the federal budget means for you.
The Burnaby Board of Trade will continue to work behind the scenes to determine how the government will make this spending and how our members can participate in the various programs and initiatives.
Direct Business Supports and Subsidies
Announcement: A new “Canada Recovery Hiring Program” will be available for businesses that continue to see revenue declines compared to pre-COVID times, and will help offset some of the costs of increasing hours of existing workers or hiring new ones between June 6 to November 20, 2021 and would allow employers to receive this new subsidy or the existing wage subsidy, whichever is higher.
In addition, Budget 2021 proposes to extend both the federal wage subsidy and the commercial rent subsidy through to September 25, 2021, with those programs starting to wind down starting in July
Our take: The Burnaby Board of Trade advocated regularly in 2020 for both the wage subsidy and the commercial rent subsidy, and we’re pleased to see these extended for those businesses that still need them. The new CRHP should also provide useful support to businesses to rehire and increase hours as the economy recovers.
Helping Business Adopt Technology
Announcement: Budget 2021 will create a “Canada Digital Adoption Program” to provide businesses with microgrants and zero-interest loans to help offset the costs of implementing digital technology, e-commerce solutions and web initiatives. In addition, this program will connect businesses with trained youth to help them successfully implement and maximize that technology.
Our take: The Burnaby Board of Trade has advocated for “hands on” supports for small business to foster greater digital development in our business community, so we applaud this announcement. This proposed program is strikingly similar to the BBOT’s own Digital Development Assistance Program, and we are pleased to see this model taken to a national level
Child Care
Announcement: The federal government has announced plans to spend $30 billion over the next five years, plus $8.3 billion in ongoing funding to support developing and launching a national childcare program. The aim will be to reduce fees for child care by 50 per cent on average by 2022, with the aim of reaching $10 per day by 2026.
Our take: The Burnaby Board of Trade has long advocated the child care is an economic issue and is key to fulfilling the potential of our labour force. We applaud this measure. And we look forward to engaging with government to make sure it is done correctly, and supports workers and employers.
Climate Change and the Environment
Announcements:
A further $5 billion over seven years for the Net Zero Accelerator to fund projects that will help reduce domestic greenhouse gas emissions across the Canadian economy.
$319 million over seven years to support research, development, and demonstrations that would improve the commercial viability of carbon capture, utilization, and storage technologies, and will seek to also introduce an investment tax credit for capital invested in such projects.
$4.4 billion to homeowners to provide interest-free loans worth up to $40,000 each to do retrofits and energy efficiency upgrades to homes.
$35 million to help establish the Centre for Innovation and Clean Energy here in BC to advance the scale-up and commercialization of clean technologies in B.C. and across Canada.
Our take: The Burnaby Board of Trade supports government action to address climate change, especially where it partners with and leverages the abilities of the private sector. We will continue to engage with the government on the implementation of these new climate actions.
Other Announcements
$1.9 billion over four years to support the National Trade Corridors Fund, a fund which has supported important trade and transportation initiatives in our region
$2.2 billion in biomanufacturing and life sciences for developing greater domestic supply
$146.9 million over four years, starting in 2021-22, to strengthen the Women Entrepreneurship Strategy and provide women entrepreneurs with greater access to financing, mentorship, and training.
For more information on Budget 2021:
Canadian Chamber of Commerce – Budget 2021 Statement / Detailed Analysis
KPMG Budget 2021 Recap Webcast – April 20, 9:00am EST
connect with us