Small businesses across British Columbia are navigating rising costs, ongoing crime impacts, and continued trade uncertainty. The Business Improvement Areas of British Columbia (BIABC) is actively advocating on their behalf — calling for practical solutions that protect safety, stabilize costs, and strengthen local economies.
Two recent issues have brought renewed urgency to that work: the proposed expansion of the Provincial Sales Tax (PST) to essential services, and the province’s delayed tariff-response strategy.
PST Expansion: Taxing Safety and Essential Services
BIABC is warning that expanding the PST to essential services — including security — will directly increase operating costs for small businesses at a time when margins are already thin.
For many storefront businesses, security is no longer optional. It’s a core operating expense.
Across BC, businesses have significantly increased spending on:
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Security guards and patrols
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Monitoring systems
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Incident response
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Loss prevention services
This shift reflects growing concerns around theft, vandalism, and disorder in commercial districts.
What Businesses Are Reporting
A recent BIABC survey found:
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Almost 90% say non-violent repeat crime has had a moderate to very significant impact on their business or commercial area
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Nearly 40% report annual losses exceeding $5,000, with many reporting losses in the tens of thousands
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Most businesses report crime has increased compared to previous years
These losses aren’t abstract. They show up as recurring break-ins, stolen inventory, vandalized storefronts, and increased insurance premiums.
Expanding the PST would also apply to universally required services such as:
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Accounting
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Payroll
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Compliance support
These are not growth-related expenses. They are baseline costs required to operate legally and responsibly.
Non-profits — including Business Improvement Areas themselves — would also be affected. BIAs operate on fixed budgets and have limited flexibility to absorb new or unexpected costs.
BIABC is urging the province to pause implementation and engage in structured consultation with small-business and non-profit communities before moving forward.
Tariff Uncertainty: Businesses Want Action, Not Signals
At the same time, small businesses are dealing with continued trade turbulence and tariff uncertainty.
A new BIABC survey of 260 businesses conducted in late November 2025 found:
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Nearly 50% are dissatisfied with the province’s response to tariffs
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Only a minority believes current efforts are delivering meaningful relief
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Many continue to face sourcing challenges, rising costs, and supply-chain instability
As BIABC President Jeremy Heighton noted, “Tariff anxiety hasn’t gone away.” Businesses were told a tariff-response plan was coming, but months later, uncertainty remains.
What Small Businesses Want
Survey respondents were clear about their priorities:
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90% want concrete steps to remove interprovincial trade barriers
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57%+ support expanding Buy BC and Shop Local initiatives
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Many want easier access to domestic markets to reduce reliance on U.S. supply chains
The province has signed the Canadian Mutual Recognition Agreement (CMRA), which aims to streamline trade across provinces. BIABC views this as a positive step, particularly for:
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Local makers
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Manufacturers
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Independent retailers
However, food and alcohol are currently excluded from the agreement due to regulatory complexity. BIABC hopes further work will expand inclusion over time.
A Structural Challenge for Small Operators
The survey also highlighted a key issue:
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85% of respondents employ fewer than 10 people
Many of these businesses are excluded from federal tariff-response programs and lack the administrative capacity to navigate complex application processes.
BIABC is calling for provincial responses that are:
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Simple
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Accessible
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Designed specifically for small operators
The goal is real, near-term relief — not just policy announcements.
A Critical Moment for BC’s Commercial Districts
Small businesses are currently managing:
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Inflation
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Labour shortages
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Insurance increases
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Weak consumer confidence
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Rising public safety costs
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Ongoing trade uncertainty
The cumulative impact is significant.
BIABC continues to advocate for practical policies that reflect the real-world pressures facing storefront businesses, main streets, and commercial districts across the province.
About BIABC
The Business Improvement Areas of British Columbia (BIABC) is the provincial champion of strong, vibrant, and successful downtowns, main streets, and commercial districts throughout BC.
Its members represent more than 80 business districts and approximately 55,000 businesses across the province, employing hundreds of thousands of retail, service, and office workers.
Connect with BIABC
To learn more or stay informed about advocacy efforts:
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Visit: https://www.bia.bc.ca
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Follow BIABC on social media
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Contact: kgleeson@lbmg.ca (media inquiries)
BIABC remains committed to ensuring that small-business voices are heard — and that policy decisions reflect the realities on the ground.
