Canada Elections 2025: How Major Parties Differ On Key Issues
The federal election in Canada is shaping up to be one of the most closely contested in recent memory. With Prime Minister Mark Carney's Liberal Party holding a narrow lead over Conservative leader Pierre Poilievre, the race is intensifying as the New Democratic Party (NDP), led by Jagmeet Singh, along with smaller parties, look to make significant gains.
The outcome of the election is uncertain, and voter priorities are heavily influenced by key issues such as rising living costs, housing affordability, and climate action.
Here's an overview of the most pressing concerns and where each party stands:
Cost Of Living
The Liberals and Conservatives both want to cut taxes for people in the lowest tax bracket. The Liberals plan to lower taxes by 1%, while the Conservatives want to reduce the tax rate from 15% to 12.75%.
The Conservatives also want to remove the federal sales tax on new homes and Canadian-made cars. The Liberals promise to remove taxes on homes under C$1 million for first-time buyers.
The Bloc Quebecois, focused on Quebec, wants to increase Old Age Security payments by 10% and limit credit card interest rates.
The NDP wants to remove sales taxes on essentials like energy, phone, and internet bills, and double the income for Canadians with disabilities.
Defence Spending
Canada has faced criticism for not meeting NATO's military spending target of 2% of GDP, including from US President Donald Trump. Both the Liberals and Conservatives aim to reach this target by 2030.
The Liberals plan to spend C$18bn over four years on new equipment like submarines and icebreakers for the north. The Conservatives promise C$17bn, with plans to build Arctic military bases in Iqaluit and Churchill, Manitoba.
The NDP has a longer timeline, aiming for 2032, and would cancel contracts for US-built fighter jets while setting up new military bases in the north.
Energy And Climate
The Conservatives plan to scrap the carbon pricing programme introduced by former Prime Minister Justin Trudeau. They also want to remove the cap on oil and gas emissions and Bill C-69, the Environmental Assessment Act. The party plans to offer a tax credit to support clean manufacturing.
The Liberals intend to improve the industrial carbon tax, support carbon removal technologies, and approve clean energy projects faster. They also propose building a Canada east-west electricity grid and are open to new pipelines to reduce US dependency.
The NDP supports the industrial carbon tax, opposes LNG pipelines in Quebec and the Alberta-New Brunswick oil pipeline, and favours the east-west electricity grid. They also oppose fossil fuel subsidies.
The Bloc and Greens want to eliminate fossil fuel subsidies. The Greens aim for a fully renewable electricity system and oppose new pipelines and oil exploration projects.
Trump Tariffs
Most parties agree on retaliatory tariffs but differ on how to use the money. The Conservatives plan to use it for tax relief, especially for affected workers. The Liberals and NDP want to help workers and businesses, with the NDP pledging to put all funds toward support.
The Liberals also promise C$5bn to diversify trade and invest in infrastructure and C$2bn to protect the auto industry. The Conservatives aim to remove trade barriers between provinces and seek new trade agreements with the UK, Australia, and New Zealand.
The Bloc wants pandemic-style support for affected workers and more help for Quebec's aluminium industry. The NDP proposes a 100% levy on Tesla products if Trump imposes full tariffs and plans to bar him from the G7 summit in Alberta.
Housing Prices
The Liberals plan to create a federal entity to develop affordable housing, with C$25bn in debt financing for prefabricated home builders. They aim to double housing starts to 5 lakh per year.
The Conservatives propose tying federal funding to cities based on the number of homes built. They aim to build 2.3 million homes over five years (4.6 lakh annually) and sell off 15% of federal buildings to make land available for affordable housing.
The NDP plans to build 3 million affordable homes in five years, speed up approvals, and invest C$1bn for rent-controlled homes. They also want to set aside federal land to create 1 lakh rent-controlled units by 2035.
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