Every provincial budget tells a story about priorities. Budget 2026 does – but it also tells a story about mounting fiscal strain.
British Columbians are watching deficits and debt rise at an unprecedented pace. The concern is not simply this year’s shortfall, but the trajectory: growing deficits, expanding provincial debt and rapidly increasing debt-servicing costs that will constrain government’s ability to respond in the years ahead.
As interest payments consume a larger share of public resources, flexibility shrinks. That matters for families facing higher living costs, and for businesses trying to plan in an environment that feels increasingly uncertain.
Against that backdrop, the budget references investment in two areas important to the automotive sector: charging infrastructure and skills training.
Both are essential to economic competitiveness and to the vehicle transition already underway. But in a budget defined by record deficits, it is reasonable to ask not just what is promised – but what will actually be delivered, where and when.
The budget references funding to expand EV charging, yet the allocation sits inside a broad electrification envelope alongside building retrofits, efficiency programs and grid initiatives. Charging is included, but not clearly delineated.
For drivers, that lack of clarity matters.
Confidence in electric vehicles depends on visible, accessible infrastructure. It depends on knowing that highway corridors are covered, that apartment residents can realistically charge at home and that growing communities will not outpace capacity. Without clear breakdowns and timelines, uncertainty persists – and uncertainty slows adoption.
The same concern applies to workforce development.
Budget 2026 includes funding to expand trades training and apprenticeship capacity. Labour shortages are real and affecting many sectors. However, the funding applies broadly, not specifically to automotive technicians – a workforce central to servicing increasingly advanced vehicles.
Modern vehicles require specialized training and ongoing certification. Without targeted expansion of automotive-specific training capacity, the risk remains that shortages continue even as overall trades numbers rise.
At the same time, there are additional policy pressures that directly affect affordability and competitiveness – which the budget didn’t address.
The New Vehicle Luxury Tax now captures vehicles that many families and small businesses rely on every day – including mainstream SUVs and pickup trucks whose pricing reflects safety standards, technology and inflation rather than luxury. Taxing essential transportation as a luxury purchase adds cost pressure without improving outcomes.
There is also a pressing need for certainty around zero-emission vehicle mandates. With the federal government stepping back from its ZEV mandate, divergence creates market instability. Dealers, manufacturers and consumers operate within a North American supply chain. Policy misalignment increases risk and reduces predictability.
At minimum, the province should align with federal policy to ensure targets reflect infrastructure readiness, supply realities and what British Columbians can reasonably afford.
What ties infrastructure, workforce capacity and policy alignment together is certainty – something that is increasingly scarce in an environment of escalating deficits and debt.
Consumers making major purchasing decisions, workers choosing career paths and businesses planning investments all depend on stable and coherent policy frameworks.
Budget 2026 references important areas. But in a period of fiscal pressure and rising costs for British Columbians, the real test will be whether implementation is clear, targeted, realistic – and timely.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. He can be reached at [email protected]
