The 2020 British Columbia Provincial Elections: Economic Recovery

British Columbia’s economy has been hit hard as a result of the COVID-19 pandemic. British Columbia’s GDP is expected to decrease by ~7% in 2020, along with unemployment rising to 10%, and retail sales dropping by 1.5%¹. Economic forecasts predict that these conditions will last until at least 2022. The impact of COVID-19 has been especially hard for our tourism, restaurant, and hospitality sectors². While the federal government is expected to play the leading role in supporting Canadians through the economic recovery, the next Government of British Columbia will also be responsible for the economic health of the province.

Here is what the parties have proposed as policy solutions for economic recovery:

BC NDP

The BC NDPs have proposed to³:

• Provide one-time direct deposits of $500-$1000 depending on household income,
• Support small businesses by setting up a mentorship program and helping them access new markets,
• Continue authorizing expansion of restaurant and hospitality services (e.g., extended patios),
• Continue implementing the Economic Recovery Plan, which includes:
  • A tax credit for businesses on eligible new payroll, 
  • Recovery grants for eligible businesses, 
  • A PST rebate for select equipment and machinery, and
  • A new Tourism Task Force to help that industry move forward, and 
• Establish a Worker Training and Job Opportunity Office that will include a focus on supporting resource-dependent communities and developing higher-valued BC products.

Green Party of BC

The Green Party of BC has proposed to⁴:

• Create a 6-month rent subsidy program for qualifying small businesses to cover 25% of their rental costs (limited to $50,000),
• Support the tourism sector by:
  • Reworking the provincial grant program, together with industry, to focus on small tourism operators, 
  • Develop a separate grant program for not-for-profit tourism business and cultural facilities and attractions, and
  • Develop a repayable loan program for those in the hospitality and tourism sectors that don’t qualify for the provincial grant program, and
• Help people get back to work through a Clean Jobs Plan that creates thousands of jobs that, for example, restore and enhance BC’s natural assets, and improve community resilience to climate change.

BC Liberal Party

• Stimulate consumer spending with a one-year provincial sales tax holiday, followed by a reduction of the PST to 3% until the economy recovers,
• Eliminate the 2% small business income tax to support businesses in hospitality, tourism, and other sectors,
• Launch a loan guarantee program for the tourism and hospitality sectors, and
• Cap online food delivery charges at 15%.

References

1. The Business Council of British Columbia website: The 2020 shutdown: how deep is the economic hole? June 18 2020.
2. Statistics Canada: The Daily Labour Force Survey, August 2020. September 4 2020. 
3. BC New Democratic Party website: John Horgan’s Commitments to BC. Oct 7th, 2020.  
4. BC Green Party website: Furstenau releases B.C. Greens plan to support tourism and small business. October 8 2020
5. BC Liberal Party website: BC Liberals commit to eliminating small business tax, loan guarantees for tourism and hospitality. October 8 2020. 
6. BC Liberal Party website: People need help now, BC Liberals commit to immediate elimination of PST. September 28 2020.

For additional information on our Quick Snips! series, see the introduction post.

Page last updated October 12, 2020