News & Events Province Releases Budget 2026: Implications for Construction Employers
On February 17, 2026, the Province released Budget 2026, outlining its three-year fiscal plan and capital investment strategy. While there remain concerns surrounding a mounting deficit and debt, and additional taxation and other measures to address continued economic pressures on the BC economy, CLR welcomes the budget’s continued recognition of capital spending on BC public infrastructure and investing in skilled trades training.
Unionized construction employers and workers will play a central role in delivering taxpayer-funded projects and advancing major developments across British Columbia. For private investment to flow, stability matters. Investors need confidence in government commitment to infrastructure, in a skilled and capable workforce, and in contractors equipped to deliver complex projects. CLR members are ready to meet this demand.
To coincide with the announced budget, the CLR will continue to advocate for and emphasize the need for the BC government to ensure changes in permitting, assessments and other regulatory environment that can delay project approvals, and to focus on minimizing any opportunities for delays that has been costly to our province to date. We must provide the assurances that private investment requires that will in turn attract new construction development and create jobs and economic wealth in the BC. The current budget does at least seem to acknowledge the construction sector as a critical industry and a necessary one in combatting the pressures facing the BC economy.
Measures relevant to unionized construction employers include:
- $283 million in new funding over three years to expand skilled trades training and apprenticeship capacity.
- Expansion of PST to professional services, including accounting and bookkeeping, commercial real estate services, and architectural and engineering services.
- Nearly $38 billion in taxpayer-supported capital investments, with adjustments to the sequencing of several previously approved projects.
- A new temporary 15% Manufacturing and Processing Investment Tax Credit.
- Public sector efficiency measures, including reductions in executive and full-time-equivalent positions across Crown corporations and agencies.
The expansion of PST to professional services will increase soft costs across many projects. While the proposed measure has not yet received Royal Assent, CLR will be advocating on behalf of members regarding the cumulative impact of this change on the competitiveness of BC construction companies, particularly in comparison to other jurisdictions competing for private capital and major project investment.
CLR will continue to assess the implications of these measures for employer operations, bargaining preparation, and workforce development, and will provide updates as necessary.
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