Federal Budget 2025: A step forward on productivity, but unlocking private investment is the missing link

(Toronto – November 4, 2025) – The Ontario Chamber of Commerce issued the following statement in reaction to the 2025 Federal Budget, tabled today by Finance Minister François-Philippe Champagne:

“Budget 2025 is more transitional than transformational, but it marks an important turning point — prioritizing and incentivizing investment more than consumption, and focusing on the environment and infrastructure businesses need to diversify and grow, benefiting workers and communities,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce. “It’s time to shift from ambition to execution, and the Ontario Chamber will keep urging the government move further and faster to catalyze private-sector investment in high-potential sectors to drive productivity and prosperity.”

This Budget delivers on several of the OCC’s key priorities for Ontario’s business community, committing significant capital to strengthen Canada’s industrial base. For example:

• Boosting productivity and innovation through the Productivity Super-Deduction, enhanced Scientific Research and Experimental Development (SR&ED) Tax Incentives, and $925.6 million for sovereign public AI infrastructure. Dedicated funding for life sciences and emerging technology via the Strategic Innovation Fund and the Venture and Growth Capital Catalyst Initiative can help turn Canadian innovation into commercial success.
• Accelerating housing and infrastructure development with $13 billion for Build Canada Homes, complemented by an expanded $80 billion Canada Mortgage Bond limit for multi-unit housing. The $51-billion Build Communities Strong Fund and the new Major Projects Office are welcome steps to accelerating nation-building projects such as the Darlington SMR. Meanwhile, the new $5-billion Trade Diversification Corridors Fund will strengthen supply chains and expand access to global markets.
• Unlocking interprovincial trade and attracting and skilling talent through the proposed One Canadian Economy Act, the $97-million Foreign Credential Recognition Action Fund to tackle workforce shortages in the health and construction sectors, the $1.7 billion investment to recruit over a thousand highly qualified international researchers to Canada, and the extension of the Student Work Placement Program funding, ensuring our domestic pipeline is strengthened.

While Budget 2025 makes historic investments, success will depend on sustained focus and careful implementation. The OCC encourages the federal government to keep the following priorities top-of-mind:

• Modernizing the federal tax framework through a comprehensive review of the federal tax system, including corporate income tax, to identify opportunities for simplification and incentives that directly stimulate business investment, productivity, and growth, particularly for small and medium-sized enterprises. Prioritizing reducing administrative burdens for small businesses and improving predictability will help ensure every federal dollar supports economic efficiency.
• Accelerating digital infrastructure by building on the “dig once” policy. Coordinated public and private investment is needed to enhance broadband redundancy and resiliency, closing connectivity gaps in rural and remote communities.
• Strengthening the life sciences ecosystem by streamlining the complex national review and approval processes for innovative medicines and medical devices. While there are promising new financial tools, continued action is required to ensure Canadian patients get timely access.
• Advancing comprehensive EI Reform through a tripartite approach. Temporary flexibility measures are a start, but comprehensive modernization is needed to ensure the system is sustainable, affordable, and fully aligned with the needs of today’s evolving workforce and employers.

“The Budget represents an essential change in Canada’s direction, and the scale of its investment reflects the urgency of this moment. It’s time for relentless focus, coordinated action, and a commitment to turning policy into prosperity for Ontario’s businesses and communities,” added Tisch.

Read the Ontario Chamber of Commerce’s 2025 Federal Budget Submission here.

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About the Ontario Chamber of Commerce

The Ontario Chamber of Commerce (OCC) is the indispensable partner of business and Canada’s largest, most influential provincial chamber. It is an independent, non-profit advocacy and member services organization representing a diverse network of 60,000 members. The OCC convenes, mobilizes and empowers businesses and local chambers in pursuit of its purpose: to bring inclusive and sustainable prosperity to Ontario’s businesses, workers, and communities.

For more information, please contact:

Andrea Carmona
Senior Manager, Public Affairs
Ontario Chamber of Commerce
andreacarmona@occ.ca | Mobile: (647) 234-0255