Earlier this week, the BC NDP tabled its first full budget. How do the new government’s budgetary commitments compare to its campaign trail promises? Edelman Vancouver’s Public Affairs team weighs in. To learn more about Edelman, please visit www.edelman.ca.

1. BC NDP’S
FIRST BUDGET
OVERVIEW
Expectations were high for the NDP’s first full budget, in which the government promised to make “historic” investments in both housing and child
care during its recent Speech from the Throne. Below is a breakdown of these budget commitments and an overview of how the government’s
budget stacks up to its promises.
To recap: last September, the NDP’s budget update announced spending of nearly $2 billion towards welfare and disability rate increases, including a
50% cut to MSPs, K-12 education improvements, and resources towards tackling the fentanyl overdose crisis. To cover the cost of these initiatives, the
NDP implemented two major tax increases: a 1% hike to the corporate income tax rate and an income tax increase for those earning over $150,000.
Edelman Vancouver | February 2018 | 1400—1500 West Georgia St | Vancouver, BC V6G 2Z6 | 604 623 3007
Hon. James Moore
Special Advisor, Public Affairs, Edelman Canada
604.648.3401 | james.moore@edelman.com
Bridgitte Anderson
General Manager, Edelman Vancouver
604.648.3403 | bridgitte.anderson@edelman.com
“It’s clearly a budget that’s meant to put people first and correct some of the perceived wrongs that have happened over the last number of years.”
Andrew Weaver, MLA and BC Green Party Leader
REACTIONS
• $6 billion over the next 10 years to create 114,000 housing units for families, seniors, students, and women and children fleeing domestic
violence
• A 2% increase in the property transfer tax, up to 5% on homes with a fair market value of more than $3 million
• An immediate increase to the foreign buyer tax from 15% to 20%, and an expansion to Kamloops, Kelowna, Greater Victoria
and the Fraser Valley
• A new speculation tax, to be introduced next fall, aimed at foreign and domestic homeowners, starting at 0.5% and rising to 2% by 2019
HOUSING
CHILD CARE
• $1 billion over the next three years to expand access to licensed child care – part of the NDP’s larger plan to create more than 22,000
new spaces
• A $350 subsidy to be provided to licensed care providers towards the cost of child care space
• An affordable child care benefit, to commence in September 2018, providing up to $1,250 a month per child
DELIVERING ON PROMISES?
ACTUALPROMISED
“We were optimistic but cautious about whether or not they’d deliver on all the aspects. They have.”
Sharon Gregson, Spokesperson, Coalition of Child Care Advocates of B.C.
“We see a budget [and] promises being funded on the backs of job creators in the province.”
Shirley Bond, Finance Critic, Liberal Party of British Columbia
“We certainly applaud government’s efforts on easing the burden of high housing costs and increasing access to child care, but in introducing a payroll tax to
offset lost MSP premium revenues this Budget delivers another meaningful blow to small to medium employers, especially in the service and technology sectors.”
Ian Black, President and CEO, Vancouver Board of Trade
2% TAX ON SPECULATIVE REAL ESTATE
The government announced an annual speculation tax on the assessed
value of homes in urban areas, launching this year at 0.5% and rising
to 2% by 2019.
$10-A-DAY DAYCARE
One of the NDP’s signature campaign promises, $10-a-day daycare, was
missing from the budget. Finance Minister Carole James said that the
government is still pursuing the plan, and that the $1-billion allocated to
child care would assist families in the meantime.
114,000 AFFORDABLE HOUSING UNITS
$6 billion has been allocated over the next 10 years to create 114,000
housing units for families, seniors, students, and women and children
fleeing domestic violence.
$400 RENTER’S REBATE
The renter’s rebate, another signature NDP campaign promise, was
missing from the budget. Finance Minister Carole James said that while
the government would continue to explore the idea, “We’re not going to
do everything overnight.”
ELIMINATION OF MSP PREMIUMS
Medical Service Plan premiums are slated to be eliminated by 2020.
To compensate for budget losses, the province will put in place a new
payroll tax for employers starting on January 1, 2019.
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