British Columbia's 2025 Budget was delivered Tuesday morning on the same day tariffs by the United States on Canada kicked off an unprecedented and unpredictable trade war. For the third year in a row, Vancity Community Foundation was there in Victoria to help deliver you the highlights from the announcement.
In these uncertain times, our team is reminded that VCF was founded on the belief that if we work together, we will have the resources we need to build a thriving, vibrant community. That belief has never been more important - and it's a theme reflected in BC's new 2025 budget.
For months, the BC Government had been signaling that this budget would be cautious and act as a response to this uncertainty. Today, BC's Finance Minister Brenda Bailey admitted that, "This is not a budget that has splashy new announcements."
In many ways, this budget instead circles the wagons and focused on preparing for uncertainty, growing economic activity in sectors such as natural resources, agriculture, and tech, and focuses spending on existing core areas like education and health.
Despite this modesty, there are several areas worth highlighting.
Shoring up housing supports for vulnerable populations
- Increasing average Rental Assistance Program (RAP) payments from $400 to $700 per month as the income threshold is raised to $60,000. This makes nearly 6,000 families eligible for the program, up from 3,200.
- Increasing average Shelter Aid for Elderly Renters (SAFER) payments from $261 to $337 as the income threshold rises marginally to $40,000. As a result, 1,600 more seniors will receive these rental supports.
- BC Rent Bank will also receive $4.45 million, the final installment of a multi-year funding commitment. BC Rent Bank is a project of VCF and plays a critical role in keeping people housed through short-term loans that help people make their rent when an emergency strikes.
We are glad the province followed through on their promise on the Rent Bank, but now the focus shifts to what's next. VCF will be working hard to extend and expand this urgent and cost-saving provincial partnership.
Continued focus on middle-income housing and speculation
- BC Builds will see an additional $318 million over three years for rental homes aimed at middle-income people - this is on top of the almost $200M in funding to launch the program in last year's budget.
- An increase to the Speculation and Vacancy Tax will generate $47 million for housing and continues this government's focus on moving homes away from investors and towards regular people.
Supports for vulnerable neighbours
- $90 million to help people living in encampments will expand both the Homeless Encampment Action Response Team (HEART) and Homeless Encampment Action Response Temporary Housing (HEARTH).
- $500 million in new funding over three years for addictions treatment and recovery programs including Road to Recovery, Foundry, secure care, supports for children and youth and Indigenous-led treatment, recovery and aftercare services.
An uncertain outlook
As part of the budget, the government acknowledged several important risks on the horizon beyond the tariff threat. Key among them were:
- Higher rents reducing affordability and disposable income
- Severe climate-related events disrupting lives and impacting the economy
- A lack of affordable housing limiting the supply of labour
These are all areas where investments in affordable housing and climate resiliency help British Columbians in the long term. These are also the same areas where VCF has focused our work on through our new strategic plan.
But while the work of organizations like ours is important, we need the strong partnership of government to truly make a lasting impact on people's lives.
From supports that allow renters to stay in the homes they already have, to helping non-profits build more affordable homes faster, to supporting front-line organizations planning for more extreme climate events, VCF is ready to deepen our work with the Government of BC to deal with an uncertain future and keep our province strong.