Ontario 2025 budget: Highlights from bike lanes to alcohol revenue and housing
Ontario has tabled its 2025 budget, outlining its spending plans for the next year in an economy dominated by tariffs from the United States.
The annual document gives an indication of the health of the province's economy and includes major and minor policy announcements from the government.
Under tariffs from U.S. President Donald Trump — and the threat of more potentially to come — Ontario has announced an increase in deficit spending to respond.
The budget, titled A Plan to Protect Ontario, focuses its major announcements on the tariffs but includes a raft of new policies.
Below are a few highlights:
New tariff measures
The budget includes tens of billions of dollars in tariff-related relief and stimulus, confirming a range of measures that were previously announced or included in the Progressive Conservatives' recent election campaign.
Story continues below advertisement
The creation of a new $5 billion Protect Ontario fund is at the heart of that plan. The fund will include $1 billion in relief to help businesses struggling with liquidity, and another $4 billion for other support measures.
The government will also roll out a $1.3 billion manufacturing tax credit and $11 billion in business support — largely through wage deferral.
Smaller funds in the budget relating to tariffs include $20 million for layoff coordination centres and $40 million for communities especially impacted by tariffs.
More bike lanes to be removed
The budget also includes fresh news on the Ford government's ongoing attempts to remove bike lanes in the City of Toronto.
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy
Last year, the province said it would remove bike lanes from Bloor Street, Yonge Street and University Avenue.
Story continues below advertisement
The legislation that allowed for the removal of those bike lanes was appealed by cycling advocacy groups. While their case — alleging their removal would be unconstitutional — has not been decided, an Ontario judge granted an injunction, temporarily blocking their removal.
The government has appealed that injunction.
Meanwhile, the province used its annual budget to take away two more neighbouring bike lanes. It now plans to remove bike lanes from Queen's Park Crescent and Avenue Road.
The two streets set to be targeted are both located steps from the Ontario legislature.
Less money from alcohol
The latest budget is the first to be tabled since the Ford government rolled out its liberalization of the province's alcohol market.
Last spring, Ontario announced it was breaking an exclusivity deal with The Beer Store to allow convenience stores, grocers and big box retailers to sell beer, wine and pre-mixed drinks.
Story continues below advertisement
At the same time, the government also made the LCBO the exclusive wholesaler for the entire province.
The liberalization of alcohol was also at the heart of a weeks-long LCBO strike held during the summer.
The budget shows that, despite the fact that the LCBO sells alcohol to the convenience stores, its revenues have fallen relatively significantly this year.
Income from the LCBO will drop dramatically from $2.5 billion in 2022 to a projected $1.9 billion this year. Overall tax revenue from alcohol will also fall from $600 million in 2022 to $388 million in 2025.
The budget includes measures which could lead to revenue falling further in the future.
The budget, for example, increases the discount LCBO offers to wholesalers from 10 per cent to 15.
A series of wholesale mark-up changes and tax category tweaks are also designed to lower the cost of alcohol in Ontario without cutting the money given to producers.
That means the government is telling the LCBO to reduce its markup — and therefore cutting the money it brings in.
Housing starts down, again
For another successive budget, the province's housing start projections have fallen significantly.
Story continues below advertisement
The latest forecasts, which are based on private-sector analysis, show the province will see an 18 per cent decline in housing starts over the next three years compared to earlier projections.
Instead of constructing 282,000 homes between 2025 to 2027, the province is now expected to build 229,000 homes in that same period.
The Ford government promised in 2022 to build 1.5 million new homes over the next decade, to the year 2031. In order to do that, the province would need to start 150,000 new homes every year for the decade.
Ontario has never come close to that figure — and set its target for the first few years lower. The latest data, however, projects the province will be achieving roughly half of that annual target.
This year, Ontario is expected to begin building 71,800 housing units, with 74,800 next year and 82,500 in 2027.
The housing minister said his government remains committed to the goal of 1.5 million homes.
New police spending plans
The budget also includes some additional funding announcements for law enforcement.
Story continues below advertisement
The government has earmarked $1 billion to renovate and expand the Ontario Police College in Aylmer, as well as a new Ontario Provincial Police Academy in Orillia.
The moves play into changes announced last year by the government, designed to drive the supply of new police officers in the province, including eliminating tuition fees.
The government will also add two new police helicopters for forces serving border towns. That builds on the procurement of helicopters for Toronto-area forces announced in the 2024 budget.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
15 minutes ago
- Winnipeg Free Press
Will visa delays and border fears keep international fans away from the Club World Cup in the US?
As the United States readies for the FIFA Club World Cup, concern over such things as international travel, fan safety and even economic uncertainty threaten to diminish enthusiasm for the tournament. The United States will see the arrival of 32 professional club teams from around the globe to 11 cities for the tournament. There's a $1 billion prize pool. The Club World Cup is considered in many ways to be a dress rehearsal for the big event, the 2026 World Cup to be hosted by the United States, Canada and Mexico. But there seems to be little buzz for the Club World Cup at home or abroad. The expansion of the field from seven to 32 teams has diminished the exclusivity of the event, and ticket sales appear slow. At the same time, the tournament is being played amid reports of foreign tourists being detained and visa processing delays. Chaotic U.S. Immigration and Customs Enforcement activities and President Donald Trump's travel bans aren't exactly reassuring international fans, either. Wary travelers, visa woes Trump's policies appear to have already impacted travelers. The National Travel and Tourism Office released data showing visitors to the U.S. from foreign countries fell 9.7% in March compared to the same month last year. The travel forecasting company Tourism Economics has predicted that international arrivals would decline 9.4% this year. The U.S. Travel Association, a nonprofit group that represents the travel industry, has urged the Trump administration to improve such things as visa processing and customs wait times ahead of a series of big sporting events on U.S. soil, including the Club World Cup beginning June 14, the Ryder Cup later this year, next summer's World Cup, and the 2028 Los Angeles Olympics. Association President Geoff Freeman said, for example, that the wait in Colombia for a visa interview appointment is upwards of 18 months — already putting the 2026 World Cup out of reach for some travelers. He said his organization is working with the White House's World Cup Task Force to address issues. 'They (the task force) recognize how important this event is: success is the only option. So we're eager to work with them to do whatever it is we need to do to ensure that we can welcome the millions of incremental visitors that we think are possible,' Freeman said. 'But these underlying issues of visa and customs, we've got to address.' Secretary of State Marco Rubio, speaking at a House Committee on Foreign Affairs hearing last month, suggested consular staff could be put on longer shifts and that artificial intelligence could be used to process visas. 'We want it to be a success. It's a priority for the president,' said Rubio. But the Trump administration may have added to the concerns for international visitors by issuing a ban on travelers from 12 countries, with restrictions on travel from nine more countries. Iran, one of the countries named, has qualified for the World Cup. The proclamation included an exemption for 'any athlete or member of an athletic team, including coaches, persons performing a necessary support role, and immediate relatives, traveling for the World Cup, Olympics, or other major sporting event as determined by the secretary of state.' It did not mention fans. Fan fears There are signs current immigration policies were already impacting soccer fans and spurring worries over safety. A Latin American supporters group in Nashville stayed away from a recent Major League Soccer game because of ICE activity in the city. The city's Geodis Park is set to host three Club World Cup matches. Danny Navarro, who offers travel advice to followers on his social media platforms under the moniker TravelFutbolFan, said the World Cup Task Force announcement did not allay fears about travel, especially when Vice President JD Vance said, 'We want them to come. We want them to celebrate. We want them to watch the game. But when the time is up, they'll have to go home. Otherwise, they'll have to talk to (Homeland Security) Secretary (Kristi) Noem.' That insinuated fans visiting the United States for the World Cup could use it to stay in the country, which is nonsensical, Navarro maintained. For many countries, fans traveling to the World Cup — an expensive travel plan with hiked flight and hotel prices — are broadly viewed as higher-spending and lower-risk for host nation security planning. Navarro put the onus on FIFA. 'They must know that there is an anxiety among international travelers wanting to come in. They must know there's an anxiety among the U.S. fan base that is multicultural and wanting to go to all these places. Are they going to? Are they going to be harassed by ICE?' Navarro said. 'There is just a lot of uncertainty, I would say, too much uncertainty, that the fan base doesn't want to think about.' If you build it, will they come? It remains to be seen how outside factors will ultimately impact the Club World Cup, which is not the global spectacle or draw that the World Cup is. Ticket sales, which were based on a dynamic pricing model, appear to be slow, with lowered prices from earlier this year and a slew of recent promotions. For a match between Paris Saint-Germain and Botafogo at the Rose Bowl on June 19, there were wide swaths of available seats going for $33.45. FIFA created an incentive program that says fans who buy two or more tickets to the Club World Cup 'may' be guaranteed the right to purchase one ticket to the World Cup next summer. Navarro said economic uncertainty and fears of inflation may make fans hesitant to spend their money on the Club World Cup — when the more desirable World Cup is looming. In some host cities, there's little sign the Club World Cup is happening. A light rail station in Seattle had a lone sign advertising the event. The Seattle Sounders are among the teams playing in the tournament. Hans Hobson, executive director of the Tennessee State Soccer Association, suggested part of the problem is that, unlike the national teams that play in the World Cup, some of the club teams playing in Nashville are just not known to U.S. fans. 'It's not leagues that they watch. If it was the Premier League or the Bundesliga or something like that, then they'd go, 'Oh, I know players there. Let's go check it out,' Hobson said. There were tickets available to LAFC's match against Esperance Sportive de Tunisie in Nashville on June 20 for $24.45. FIFA President Gianni Infantino has traveled to several host cities to gin up enthusiasm. He has promised 'the world will be welcomed.' But some say the United States isn't exactly rolling out the red carpet for visitors in the current climate. Thursdays Keep up to date on sports with Mike McIntyre's weekly newsletter. 'I could see trepidation for anyone looking to travel to the U.S. at this current political climate,' said Canadian national team coach Jesse Marsch. 'So it's a sad thing, I think, that we have to talk about visiting the U.S. in this way but I think everybody has to make decisions that are best for them and that fit best with what's going on in their life and their lifestyle.' ___ AP Sports Writer Teresa Walker contributed to this report ___ AP soccer:
CBC
an hour ago
- CBC
When absence of consultation can become a political headache
In the afterglow of his party forming government in 2021 on the strength of a promise to fix health care, Premier Tim Houston and other senior officials set out on a tour across Nova Scotia to hear directly from health-care workers about how to help an ailing system. Those consultations would lead to a variety of programs and initiatives, based on feedback from people directly involved, that helped the Tories begin to make progress on a file that had become a political headache for previous governments. In the second term of Houston's Progressive Conservative government, however, people could be forgiven for being skeptical about just how interested the Tories are in consulting with the public, and whether feedback they receive will be reflected in policy and programs. Houston came off a resounding election win in November only to go into the next session at the legislature with a number of bills that caught most people off guard because none of it was discussed during the election. That included a bill that would have clipped the powers of the auditor general and privacy commissioner, give the government the power to fire non-union civil servants without cause, and lift bans and moratoriums on uranium exploration and mining and hydraulic fracturing for onshore natural gas. As the natural resources bill was making its way through the legislature, Houston responded to criticism about a lack of consultation by saying that bans had to be removed before conversations could be had. But since the Tories passed the bill, Mi'kmaw chiefs and municipal government officials continue to feel left out of any discussions, and Natural Resources Minister Tory Rushton announced a call for proposals for uranium exploration before letters could even land in the mailboxes of potentially affected property owners. Unintended consequences There was also an absence of conversation on the government's plan to make parking free at health-care sites. Sources say the Tories were warned of potential implications at hospitals in Halifax Regional Municipality, but the government pushed ahead anyway before steps could be taken to lessen impacts on health-care staff. In the face of major blowback, the government retreated on increased parking fees for health-care workers and is now scrambling to find whatever new spaces it can, including spending $1 million to upgrade land it already owns on South Street near the IWK Health Centre and Victoria General Hospital. A lack of consultation caused the Tories headaches even on legislation that should have been an easy public relations win. Houston's bill to help knock down interprovincial trade barriers was lauded by other provinces and premiers who said they would follow his lead. The problem for the premier was no one bothered to talk to professional regulators before the bill was introduced. They quickly pointed out flaws that, had the government not amended the bill, would have prevented regulators from being able to provide oversight and detect people posing as professionals. A government's prerogative Houston and his team will say that change, along with changes to the bill that would have affected the auditor general and privacy commissioner, are signs of a government willing to listen to feedback. But consultation ahead of time would have identified the flaws that created problems for the Tories in the first place. When it wants to, this government can lead a thorough and thoughtful consultation process. Along with the health tour and other efforts to get feedback from health-care workers, the recent work related to the new student code of conduct was mostly well received. The government is also in the midst of consultation about the potential of changing the rules governing where alcohol can be sold. But then there is the process used for the Coastal Protection Act, where the government disregarded documented results in favour of a different direction. That's its prerogative, but it can risk creating widespread cynicism. Much is made of the supermajority Houston won last November, and what it means for his government's ability to advance its agenda. But that supermajority also means that when the government does something that upsets the public, there's an increased chance a PC MLA will be the one fielding angry telephone calls, office visits or emails from constituents. The next election might be three or four years away, but an accumulated perception that a government won't take the time to ask questions or seek feedback before pushing ahead with plans can be difficult to overcome when voters next turn their minds to casting a ballot.
Globe and Mail
2 hours ago
- Globe and Mail
Does the EV Industry Have a Truck Problem?
There's a truth in Detroit for Ford Motor Company (NYSE: F) and General Motors, and that's that trucks are king. The dirty little industry secret, if you can call it a secret, is that full-size trucks cost only marginally more to produce than a passenger car, yet the former can sell for two to three times as much. Full-size truck sales are the backbone of Detroit automakers, but as the industry transitions to electric vehicles the scene may be set to change. In fact, the EV industry might have a truck problem, and that would be horrible news for auto investors. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Disappointing results Long, long ago Tesla (NASDAQ: TSLA) CEO Elon Musk essentially mocked stereotypical trucks noting their stale design. Perhaps that's why the young EV maker swung for the fences with the Cybertruck's controversial design. But the unique design didn't stir up sales as much as it stirred conversation. Originally predicted to reach annual sales between 250,000 to half a million units, the Cybertruck has been a commercial flop. It reached only 40,000 U.S. registrations last year, and while that was good enough to be the top EV pickup truck, it was a fraction of original estimates. Because Tesla doesn't break out its sales per model, registrations can serve as a proxy to sales. Ford's highly anticipated F-150 Lightning also disappointed compared to initial hype. Ford noted before the truck's launch it had 200,000 reservations and anticipated producing 150,000 trucks annually. Its actual results were a more modest 24,695 registrations in 2023 before growing to 32,893 in 2024. Rivian (NASDAQ: RIVN), which only offers the R1T, R1S, and its electric delivery van, relies on its truck for a substantial chunk of its business, but also saw less-than-thrilling results. Rivian last reported its backlog in late 2022 at 114,000 for the R1T and R1S combined, and not only did its registrations of 11,311 feel lackluster in 2023, they actually declined to 9,876 last year. What's the problem? The problem facing investors and their love of truck profits is twofold. On one end, we have the consumer issue, which is the stigma that electric powertrains are forced to their brink when it comes to performance and towing. Consumers that use their trucks as tools sometimes have difficulties with the concept of EVs performing at the required level. On the other end, the business case also gets more difficult for trucks that require towing power. Towing requires immense power and thus larger batteries which, as the most expensive component of an EV, pushes the cost up significantly. That eats into the precious juicy margins that full-size trucks have historically presented. The head of Rivian's rival company, Lucid, had this to say when discussing the potential of Lucid making an electric truck: "I really think that it's very tough to make an electric pickup truck work today," Lucid CEO and CTO Peter Rawlinson said, according to InsideEVs. "Not one that's usable and cost-effective." At the end of the day, it's important for investors to note that trucks are struggling in the EV industry. Full-size trucks have long been the backbone for automakers that thrive in the segment. Full-size trucks haul profits like few other segments can. But without a great deal of battery technology progress or cost reduction, the day of lucrative full-size truck profits could be over for automakers in the near term. Should you invest $1,000 in Ford Motor Company right now? Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
