Cranbrook Chamber Responds to BC Budget 2026

 2026 BC Budget: Mixed Impacts for Businesses

The 2026 British Columbia Budget introduces changes and challenges for local businesses. 

“Budget 2026 did not deliver what we had hoped to see. We need a plan that shows strong and innovative revenue generation outside of increased taxation,” said Stacey Brensrud, Executive Director of the Cranbrook Chamber of Commerce. “The continued trajectory of massive operating deficits and growing debt is of major concern. The debt servicing comes with a catastrophic annual price tag. We are calling on on our members to share with us how this budget is going to impact their bottom line and their chances for success in business so that we can bring this forward to the BC Government.”

The Chamber is urging businesses to be informed and ready to implement the necessary changes that are coming.

PST Expansion Creates New Costs

  • Effective October 1, 2026, the Provincial Sales Tax (PST) expands to include services in accounting, architecture, engineering, property management, security, and commercial real estate.
  • Retailers and small businesses face PST on clothing repair materials, fabrics, basic cable, and residential phone services.
  • Many service-based businesses will need to update billing systems, contracts, and pricing to comply.

Investment Incentives Provide Targeted Support

  • 15% Manufacturing and Processing Investment Tax Credit for equipment, buildings, and machinery.
  • Enhanced Scientific Research & Experimental Development (SR&ED) tax credits for tech and innovation-focused firms.
  • Temporary forestry relief through a voluntary stumpage deferral program.

Visit the BC Government’s website here for full information.

 

Sector Impacts at a Glance

Business Concerns

The Chamber joins other provincial business groups in raising concerns about:

  • Higher costs and compliance burdens for service and small businesses.
  • Increased “soft costs” in construction and real estate projects.
  • Economic confidence amid a large projected deficit and public-sector workforce reductions

The Chamber invites all members to share their stories, ideas and concerns by filling out a short survey.

2026 BC Budget Impacts

Section 1 - Business Profile

2. How many employees does your business have?(Required)
3. Is your business primarily:(Required)

Section 2: Direct Business Impacts

4. Which Budget 2026 measures are most likely to impact your business? (check all that apply)(Required)
5. If PST expansion affects your business, how? (Check all that apply)(Required)
6. Do you anticipate changes to consumer demand or wage expectations due to personal income tax increases?(Required)
7. Do you expect overall operating costs in 2026–2027 to:(Required)
8. For businesses eligible for the Manufacturing & Processing Tax Credit, do you plan to:(Required)

Section 3: Broader Economic Outlook

9. How concerned are you about the Province’s projected deficits and rising debt levels?(Required)
10. Over the next 12 months, how would you describe your business outlook?(Required)

Section 4 - Chamber Support & Advocacy

11. What are the top 3 priorities you believe the Province should focus on to support business growth?(Required)

Section 5: Solutions & Recommendations

15. Are you a member of the Cranbrook Chamber of Commerce?(Required)