B.C. Premier David Eby signalled Thursday that a $1,000 rebate cheque — the single most expensive promise of the fall provincial election — could be on the chopping block as part of a government spending review.
The premier has for weeks been walking back the timing of the “grocery rebate” cheque that would give the average single taxpayer $500 and average family $1,000 in 2025.
Given the pending “economic war” with the United States as a result of president-elect Donald Trump’s threat of 25 per cent tariffs — as well as mandate letters tasking cabinet ministers with finding savings — it appears the $1.8-billion cost of the rebate program is under reconsideration.
The rebate was expected to transition into a tax cut in 2026, leaving a $1.3-billion annual hole in government coffers each year.
“We’re making sure that everything is being looked at,” said Eby, when asked about the fate of the rebate at a news conference in Vancouver on Thursday.
Eby said the “No. 1 priority” right now is protecting B.C. families from the U.S. tariff threat.
B.C. Conservative Leader John Rustad took to social media shortly after to say the premier “never really intended to give British Columbian families $1,000 of much-needed relief.”
“That’s why he’s been slow rolling this rebate since Day 1,” said Rustad.
Mandate letters issued Thursday direct cabinet ministers to review spending, focusing on economic growth and protecting core public services “in the face of unprecedented threats from beyond Canada’s borders.”
Core priorities in the mandate letters include growing the economy to support jobs and public services such as health and education, strengthening health care, creating affordable housing, helping families with costs including child care, and making communities safer by working with law enforcement and social agencies.
Eby said the goal of the review is to ensure money is spent on “front-line services that actually make a difference for British Columbians,” not administration.
The review takes on a deeper significance and greater urgency in the context of the tariff threat, said Eby, noting the U.S. tariff threat also puts “a different lens” on programs that made sense last year but maybe not going forward.
“We can’t rely on the U.S. as a close friend, ally, and partner in prosperity,” said Eby.
Economic and natural-resource ministers are being asked to work with industry, First Nations and and communities to “dramatically accelerate permit approvals for major job and revenue-creating projects, while maintaining the world-leading environmental and labour standards B.C. is known for.”
Finance Minister Brenda Bailey is preparing the budget scheduled for March 4, taking into account all of the uncertainty around U.S. intentions, which may or may not be clarified after Trump is sworn into office on Monday, said Eby.
At Thursday’s news conference, Bailey released numbers that forecast the tariffs and a retaliatory response from Canada would .
The estimates also predict 124,000 fewer jobs in the province by 2028, that the unemployment rate would rise to 7.1 per cent next year, and that corporate profits in B.C. would decline $6.1 billion this year.
“My direction to her and to every minister, is to ensure that we are oriented to protect British Columbians in this new reality, ensure that we are responsive to the reality of British Columbian families now, and so we’re making sure that everything is being looked at,” said Eby.
Canadian Taxpayer Federation director Carson Binda said in a phone interview it’s about time the province is conducting a review of government spending to find efficiencies.
“It’s been a long time coming, and frankly, the premier shouldn’t have waited so long to look for real savings for B.C. taxpayers, especially given the massive multi-billion-dollar deficits and ballooning debt that B.C. taxpayers are facing because of overspending from this government,” he said.
As for the grocery rebates, Binda said it’s disappointing if “the relief we desperately need right now” may not be delivered.
“British Columbian taxpayers need support right now,” said Binda. “They voted for this grocery rebate, and I think it’s time for David Eby to put our money where his mouth is.”
