Press Release: 2025 Ontario Budget

Protecting job-creators and jobs – while investing in the future

 

FOR IMMEDIATE RELEASE
May 15, 2025

(Toronto – May 15, 2025) – The Ontario Chamber of Commerce issued the following statement in reaction to the 2025 Ontario Budget, tabled today by Finance Minister Peter Bethlenfalvy:

“This Budget helps protect Ontario’s job creators and jobs at a time of grave risk, and invests boldly in the economy and opportunities of the future,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce. “We’re encouraged to see action on many of the Ontario Chamber’s recommendations to boost competitiveness, scale high-potential businesses, and build essential infrastructure.

“But with spending at historic levels, there’s less room to tackle other urgent threats to our competitiveness, such as the crisis in postsecondary education. We recommend a comprehensive fiscal review to ensure Ontario’s tax and spending frameworks support long-term economic growth.

“The Ontario Chamber looks forward to continuing our collaboration with Premier Ford, Minister Bethlenfalvy and the rest of the government to protect the economy of today, and to build the economy of tomorrow.”

The OCC welcomes several key measures that align with its key advocacy priorities:

• Driving business and trade competitiveness through targeted investments, including $1.3 billion to enhance the Manufacturing Investment Tax Credit and up to $5 billion for the new Protecting Ontario Account to help businesses manage tariff-related disruptions. Other measures include a $50 million Ontario Together Trade Fund; an additional $90 million for Venture Ontario, with $50 million earmarked for venture capital funds focused on defence-related technologies such as AI and cybersecurity, and $40 million to grow Ontario’s life sciences and biomanufacturing sectors. The province is also advancing Indigenous economic participation with $3 billion in loan guarantees.

• Cultivating and attracting talent through the expansion of the Skills Development Fund by nearly $1B, reaching $2.5B to train and reskill workers, including those affected by layoffs. A $75M investment will create up to 2,600 annual seats in construction-related postsecondary programs, and $750 million over five years will fund up to 20,500 STEM seats per year at publicly assisted colleges and universities, enhancing Ontario’s talent pool in key sectors such as advanced manufacturing, life sciences and artificial intelligence.

• Growing Ontario’s life sciences ecosystem and supporting healthy communities by investing $2.1 billion in the Primary Care Action Plan, including $300 million to expand the capacity of Primary Care Teaching Clinics across the province. Over three years, an additional $15 million will renew the Life Sciences Innovation Fund to help commercialize health innovations and strengthen Ontario’s global leadership in life sciences.

• Investing in infrastructure by accelerating infrastructure projects through key investments, including $500M for critical minerals processing; an additional $5B for long-term care, energy, and housing in the Building Ontario Fund; $400M to expand the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Fund; and $50M to scale modular construction and improve affordability. New investments in shipbuilding and rail will strengthen transportation corridors and supply chains.

As the government prepares for future budgets, the OCC calls for ongoing measures to:

• Secure Ontario’s talent pipeline and knowledge advantage by increasing base operating funding for postsecondary institutions, fully funding enrolment expansion to retain young talent, and making Ontario a global magnet for research and innovation through stronger government-industry-academic partnerships. Few investments could do more to enhance Ontario’s competitiveness.

• Make value-based procurement work better for Ontario business by adopting clear criteria for sustainability, innovation, Indigenous participation, and domestic sourcing to support an attractive business environment. Building on its Building Ontario Businesses Initiative (BOBI) success, the government can further leverage procurement to achieve key economic development priorities.

• Support growth-enabling infrastructure by fast-tracking electricity system planning with digital tools, accelerating clean energy projects, enabling regulatory conditions for an “all of the above” energy strategy, and enabling growth through comprehensive land use planning policies.

On behalf of its 60,000 members, the Ontario Chamber is eager to work with the government on other priorities that can boost Ontario’s businesses and its economy, including simplification of business taxes, strategic use of procurement, land-use planning, and climate adaptation and mitigation.