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Federal Budget Set for November with Focus on Cuts and Key Investments

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Canada Federal Budget 2025: Cuts, Housing & Investments

Federal Budget Set for November with Focus on Cuts and Key Investments


Finance Minister François-Philippe Champagne confirmed today that Canada’s federal budget will be tabled on November 4, 2025, marking the first full fiscal plan under Prime Minister Mark Carney. The government says the budget will tackle inflation, trade disruptions, defense spending, and the strain on public services—setting the stage for what many consider a pivotal economic roadmap.

Balancing cuts and investments

Prime Minister Carney has emphasized the need to balance fiscal restraint with targeted spending. Federal departments have been directed to find program savings for 2026–27 and beyond, reflecting concerns that expenditures are rising faster than the economy. At the same time, the government is expected to prioritize new investments in housing, infrastructure, and climate-related initiatives to strengthen long-term resilience.

Key priorities in the 2025 federal budget

  • Housing: Expansion of affordable housing through the new Build Canada Homes agency.
  • Infrastructure: Targeted spending on transit, roads, and energy projects.
  • Climate initiatives: Green investments aimed at economic sustainability.
  • Defense spending: Adjustments to address global instability and trade security.
  • Program cuts: Savings across federal departments to slow the growth of government spending.

Build Canada Homes: A new housing agency

Alongside the budget announcement, the government introduced Build Canada Homes, a federal agency dedicated to expanding affordable housing. Backed by an initial investment, the agency is expected to play a central role in tackling the affordability crisis by increasing the supply of affordable units across the country.

What comes next

With consultations completed and fiscal priorities outlined, attention now shifts to the November budget. Observers expect a combination of tax changes, targeted cuts, and funding for signature projects to shape the Carney government’s economic direction. Analysts say the balance between fiscal discipline and strategic investment will be critical to both economic stability and public confidence.


As November 4 approaches, the 2025 federal budget is already being watched closely by policymakers, businesses, and communities across Canada. Its outcomes will likely define the government’s economic strategy for years to come.

BC STORIES

Why B.C. Municipalities Are Demanding an End to Provincial Secrecy and Funding Cuts

B.C. municipal leaders gather at the UBCM convention to push back against provincial non-disclosure agreements and cuts to housing and FireSmart funding.

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Municipalities Push Back Against B.C. Government Policies

Municipal representatives from across British Columbia are preparing to confront the provincial government during the annual Union of B.C. Municipalities (UBCM) convention, scheduled for Sept. 14 to Sept. 18 in Vancouver. Local leaders plan to present three special resolutions targeting what they describe as an expanding “climate of secrecy” and the loss of critical community funding streams.

A primary point of contention is the provincial ministry’s widespread application of non-disclosure agreements. UBCM president Cori Ramsay stated that municipal employees are increasingly required to sign NDAs prior to discussing routine matters with provincial counterparts, sometimes before the subject of the meeting is even disclosed.

While acknowledging that non-disclosure agreements are appropriate at specific stages to safeguard cabinet confidentiality, Ramsay noted that current practices prevent transparent discussion on subjects of public interest. The executive’s resolution requests that the province restrict NDA requirements during local consultations to exceptional circumstances only.

Funding Reversals Cause Financial Strain

Local governments are also challenging the cancellation of $775 million from the Community Housing Fund, an intake suspended without advance warning during February’s provincial budget announcement. Ramsay indicated that 89 communities experienced lost investment on projects already underway, highlighting that developments in Parksville and Squamish had each spent approximately $1 million prior to the decision.

Wildfire preparedness represents another key area of friction. Concerns emerged early in the year when communities including West Kelowna reported diminishing FireSmart resources. The province subsequently limited the remaining $25 million by excluding fuel management and recovery initiatives, roughly six months before declaring a provincial state of emergency for wildfires. Municipalities are advocating for a predictable, long-term funding framework to enable multi-year wildfire mitigation efforts.

Upcoming Political Engagement

The upcoming convention takes place one month prior to local government elections set for Oct. 17. Despite the timing, Ramsay expects robust attendance from mayors and councillors, whether they intend to retire or seek re-election.

In addition to debating resolutions, delegates are scheduled to hear from provincial figures including Premier David Eby and B.C. Conservative Leader Kerry-Lynne Findlay. Agenda topics also include discussion on the local impacts of the Declaration on the Rights of Indigenous Peoples Act (DRIPA) and modern treaty implementation.

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BC STORIES

BC Conservative Defector Teresa Wat Joins New Provincial Party Caucus

Teresa Wat joins Peter Milobar’s new provincial party as its sixth member, creating B.C.’s third-largest legislative caucus following Conservative departures.

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Expanding New Party Becomes B.C.’s Third-Largest Caucus

Richmond-area MLA Teresa Wat has joined the newly formed provincial political party established by former Opposition finance critic Peter Milobar. Wat becomes the sixth member to join the still-unnamed group, which will form the third-largest caucus in the British Columbia legislature behind the NDP and the Conservatives when the assembly reconvenes next month.

Milobar, who serves as the interim leader, stated that Wat’s addition on Friday demonstrates growing momentum for a serious right-of-centre alternative aimed at addressing concerns over government spending and sector declines under the current New Democrat administration.

Tensions Lead to Conservative Departures

The party’s membership is composed entirely of former provincial Conservatives who left the caucus in recent weeks amidst dissatisfaction with party leader Kerry-Lynne Findlay. Nine legislators in total have resigned from the Conservatives following Findlay’s narrow leadership victory in May, with some critics suggesting the party has moved too far to the right and imposed rigid political purity tests.

Wat originally announced her resignation from the Conservative caucus on Aug. 26, pointing to unaddressed accusations made by Findlay that questioned her allegiance to Canada. Findlay later held a private meeting with Wat to apologize directly for the comments, while also characterising Wat’s departure as a betrayal of local campaign workers and supporters who backed her during the 2024 election.

Legislative Ranks Grow Ahead of By-Election

Wat, who was first elected to the B.C. legislature in 2013 as a member of the BC Liberals, explained that her decision to join Milobar’s caucus stems from a desire to offer a credible, unified alternative focused on affordability and competent governance.

Milobar and fellow defector Ian Paton initially launched the party last month after quitting the Conservatives. Their caucus expanded last week with the additions of Rosalyn Bird, Bruce Banman, and A’a:liya Warbus before Wat’s joining. These political shifts come just ahead of a Sept. 26 byelection in Abbotsford-Mission, which will decide whether Findlay secures a seat in the provincial legislature.

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BC STORIES

Abbotsford-Mission candidates clash on spending, taxes and trust ahead of byelection

Abbotsford-Mission candidates sparred over PST expansion, spending, and party stability during a livestamed byelection debate ahead of the Sept. 26 vote.

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Candidates clash in livestreamed forum ahead of Sept. 26 vote

Tensions flared during a live 90-minute debate hosted by the Abbotsford Chamber of Commerce on Wednesday evening, where four Abbotsford-Mission candidates traded sharp criticisms over economic strategy, tax policies, and political stability.

NDP candidate Pam Alexis capped off the evening by targeting Conservative Party of BC candidate Kerry-Lynne Findley, claiming Findley is unfamiliar with the constituency and is focused on internal party conflicts rather than building a collaborative community. Findley had earlier criticized the ruling NDP on provincial spending, red tape, and an inability to balance B.C.’s budget.

Taxation and economic platforms take center stage

A primary point of contention was the expansion of B.C.’s PST to professional services starting Oct. 1. Findley voiced strong opposition, stating that local small business owners and seniors are distressed over growing tax burdens. She attributed the province’s rising debt and credit downgrade to Premier David Eby’s administration.

Alexis defended the expanded tax base, explaining it was necessary to maintain public services following the elimination of B.C.’s carbon tax. She assured voters that revenue raised would be managed responsibly.

During a candidate-to-candidate questioning period, Alexis pressed Findley on recent Conservative party instability, pointing to nine individuals—including Abbotsford South MLA Bruce Banman—who recently departed the party. Findley rejected the characterization that those individuals worked alongside her, attributing the exits to a competitive leadership race.

CentreBC candidate Lakhwinder Jhaj asked Alexis whether she would ever vote against an NDP budget, to which Alexis replied she would voice concerns privately within government rather than vote against her party. Findley seized on the response, advocating for greater public transparency. BC Green Party candidate Stephen Fowler urged more proactive environmental action, stating climate change drives costly flood and wildfire emergencies.

Common ground on infrastructure and flood mitigation

Despite sharp exchanges, candidates found consensus on several local issues. All four agreed that federal assistance is crucial to protect the riding from future flooding, and all supported expanding transit options to alleviate persistent highway congestion.

Additionally, both Findley and Alexis favored expanding mental health resources, supporting local food processing on Agricultural Land Reserve property, and opening inter-provincial trade barriers to bolster B.C.’s economy.

The byelection, scheduled for Saturday, Sept. 26, was triggered after former Conservative MLA Reann Gasper resigned her seat on Aug. 22 to allow Findley to seek the nomination following Findley’s move to party leadership. The debate was moderated by University of the Fraser Valley professor Hamish Telford. BC Libertarian Party candidate Jeff Monds did not participate.

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