Affordability
Tackling affordability is key to strengthening the local economy. Lowering the cost of living enables consumers to better support local businesses while meeting their essential needs. For businesses, reduced financial pressures lead to more opportunities for capital investment and wage growth. Additionally, creating an affordable environment is essential for addressing critical labor shortages by attracting and retaining top talent.
Multi-Dimensional Tax Relief
Basic Personal Amounts
Where We Are
There remains a significant disparity that leaves Nova Scotians almost $6,000 behind other Canadians when income tax is calculated. Increasing the BPA will help with affordability by allowing Nova Scotians to keep more of their income. The biggest winners from this tax change will be the low-to-middle incomed residents who will likely spend the additional disposable income on taxable items such as shelter, food, and fuel.
How We Move Forward
Increase the provincial basic personal amount, and other income tax credits to $15,000 but maintain the existing income threshold claw back provision. With the goal of eventually eliminating the claw back provision.
Harmonized Sales Taxes
Where We Are
Nova Scotia is currently tied with 3 other Atlantic provinces for the highest level of combined sales taxes on good and services at 15%. In Ontario west, excluding Alberta, the sales tax ranges from 11 to 13%. A tax reduction on goods and services would lower the overall cost of living, making everyday essentials more affordable for residents. For businesses, it could stimulate demand, encourage consumer spending, and enhance competitiveness within the region.
How We Move Forward
Reducing Nova Scotia’s Harmonized Sales Tax (HST) from 15% to 13% would align the province with the national average and provide tangible benefits to both consumers and businesses.
Corporate Taxes
Where We Are
Nova Scotia’s current higher corporate tax rate of 14% is on average 2.13% higher than the provinces west of the Atlantic region. With Nova Scotia ranking near the bottom in North America for productivity, reducing the corporate tax burden would help stimulate business investment and foster a more competitive economic environment. A lower tax rate would make the province more attractive to both local and foreign businesses, encouraging capital investments, innovation, and job creation.
How We Move Forward
Reduce Nova Scotia’s higher corporate tax rate from 14% to 12% to better align with other province west of Atlantic Canada to encourage greater investment attraction.
Employer Payroll Taxes
Where We Are
Nova Scotia businesses have been paying the highest, or second highest Worker’s Compensation rates in Canada for 24 consecutive years. With a rate of $2.65 per $100 of assessable payroll, Nova Scotian was $1.16 over the national average. Overall, Nova Scotians businesses pay the third highest employer payroll taxes in Canada.
How We Move Forward
Work with WCB NS to reduce the average assessment rate towards the national average of $1.49 per $100 of assessable payroll.
Municipal Property Taxes
Where We Are
Halifax’s recent population boom has put enormous pressures on the city to create new infrastructure. Because of this, HRM has been forced to raise its average municipal tax bill by an average of 4.9% over the past 4 years (1%, 4.6%, 5.9%, and 8.2%).
How We Move Forward
To provide greater stability and predictability, HRM should commit to capping property tax increases at no greater than the level of inflation for any given year. This approach would help businesses better anticipate and plan for future tax bills, allowing them to allocate resources more effectively and avoid financial strain.
Affordable Housing Solutions
Cost of Housing & Red Tape
Where We Are
The average price of a new single-detached home in Halifax was $463,843 in 2019. As of October 2024, the average cost of a home in the Halifax area was $539,200, while the average for Nova Scotia is $411,100. The significant increases in housing prices over this period were driven by several factors like inflation, population growth, and a lack of existing supply.
How We Move Forward
Implement all the recommendations from the Deloitte Report on HRM’s Housing Development Barriers, specifically the recommendations around red tape, bylaws and zoning, and provide public updates on the progress towards the removal of the barriers laid out within the report. And ensure that progress is shared publicly.
Supply of Family Housing
Where We Are
Despite the recent focus from all levels of government to address the housing crisis in Nova Scotia, the number of single-family home starts has decreased by over 20% compared to 30 years ago, while the number of apartment unit starts has increased by over 200% over that same period. Increasing the availability of these types of homes will help normalize housing prices, making it more accessible for families and middle-income residents. A diverse housing stock is also crucial for attracting and retaining top-level mid-career talent, who often seek stable, family-friendly housing options near work opportunities.
How We Move Forward
To address housing affordability and support economic growth, there is a pressing need to approve more family-oriented housing units, including single-family homes, semi-detached units, and row houses.
Housing Accelerator Fund
Where We Are
In October 2023, Halifax will receive $79.3 million in total federal funding to build 2,600 new homes as part of the HAF. A requirement of the HAF is for municipalities to develop an action plan with specific goals and a minimum of 7 initiatives to meet growth targets (HRM proposed 11 initiatives). These initiatives must be met within 2 years of the commencement of the HAF program Delays or missed milestones can result in later HAF funding being withheld or potentially clawed back. Should there be funds that are clawed back, “the municipality has no identified funding source for such repayments”
How We Move Forward
- Guarantee that the CMHC scheduled reporting on growth numbers, progress on initiatives, and how HAF funding has been utilized is made public.
- Create a funding contingency plan if all initiatives in the two-year timeframe are not completed and HAF funding is clawed backed.
- Begin by contracting the 33 positions needed to execute the HAF initiatives. At the end of the 4-year program timeline, evaluate the necessity for permanent positions.
Labour
Addressing labor needs is vital for the health and growth of the local economy. A well-matched workforce ensures that businesses can operate efficiently, meet demand, and expand, driving economic activity in the region. When labor shortages are addressed, companies can avoid disruptions, improve productivity, and remain competitive, which in turn creates more jobs.
Labour Shortages
Skilled Trades
Where We Are
According to industry stakeholders, Nova Scotia needs about 11,000 new certified trade professionals to meet the required demand. Currently, the province is bringing in about 615 tradespeople a year, a shortfall of about 38 per cent of what’s needed to address our current demands for new housing, new health care infrastructure, and new transportation infrastructure.
How We Move Forward
- Focus on targeted immigration streams of newcomers with skilled trades experience.
- Increase funding for housing related trade apprenticeship programs to increase the number of seats (capacity) and update the equipment needed for the programs.
- Expand the age limit for the Province’s More Opportunity for Skilled Trades (MOST) Program to include skilled trades workers in the residential & ICI construction sectors to 40 and under.
- Invest in industry-led training pathways to increase employment rates for under-represented groups by supporting “just-in-time” enhanced direct entry training specific to industry needs and employment opportunities.
- Expand existing successful Community Benefits/Procurement Policies for Institutional investments that require a minimum of work be performed by apprentices and under-represented groups (Indigenous people, African Nova Scotians, persons with disabilities, women and men in non-traditional roles and recent immigrants).
Healthcare Professionals
Where We Are
Nova Scotia faces a critical shortage of healthcare workers and doctors, straining the province’s healthcare system. With thousands of residents on waitlists for a family physician and hospitals struggling to maintain adequate staffing levels, the demand far outpaces the available workforce. Because of this the province has spent millions of dollars in recent years on contracts for travel nurses who work here temporarily to address staffing shortages. They are often paid twice or more the hourly rate of nurses employed by the Nova Scotia Health system.
How We Move Forward
Focus on targeted immigration streams of newcomers with healthcare experience from countries with recognized credentials.
Credential Recognition
Recognition for Newcomers & Residents
Where We Are
Gaps in credential recognition for recent immigrants present significant barriers to employment in critical sectors of the economy. Many newcomers possess advanced qualifications and professional experience, yet they face lengthy, costly, and complex processes to have their credentials recognized in Canada. This delay forces skilled immigrants into underemployment or unemployment, even in fields facing acute labor shortages, such as healthcare, engineering, and education. Addressing these barriers through streamlined accreditation processes and bridging programs can help unlock the potential of immigrant talent and bolster Canada’s workforce in key industries.
How We Move Forward
- Micro-credential programs can help newcomers and residents bridge skill gaps and successfully transition into the most in-demand occupations our economy needs. These short, focused training programs provide targeted, practical skills that align with current labor market needs, allowing individuals to quickly gain qualifications and enhance their labour mobility. Micro-credentials can be particularly effective for newcomers who may need to adapt their existing skills to the Canadian workforce or residents looking to upskill in response to a quickly evolving labour market.
- Working closely with regulating organizations is essential to ensure that the foreign credentials of experienced and educated newcomers are recognized, enabling them to enter the workforce more quickly. By streamlining the credential recognition process and aligning it with Canadian standards, newcomers can have their qualifications assessed more efficiently, reducing unnecessary delays and barriers to employment.
Infrastructure
Addressing infrastructure demands is essential for the development and sustainability of the local economy. New infrastructure such as transportation networks, supports businesses by reducing operational costs and improving access to markets. Well-maintained roads and public transit also enhance the quality of life for residents, attracting skilled workers and investments to the area.
Transportation Infrastructure
Public Transportation
Where We Are
Halifax has long faced challenges with its public transit system, including limited coverage, inconsistent service, and a lack of infrastructure to meet growing demand. Many residents rely on buses, which can be delayed or overcrowded. As the city grows, improving transit infrastructure remains a pressing issue to enhance accessibility, reduce traffic congestion, and support environmental goals.
How We Move Forward
Increase the amount for the Provincial Public Transit Assistance Program and expand the list of recipients to include surrounding HRM communities in West Hants, East Hants, Colchester, Kings, and Lunenburg counties.
Land Acquisition for Transit Projects
Where We Are
A major component of HRM’s Rapid Transit Strategy is the acquisition of parcels of land to improve transit infrastructure. The costs to acquire these parcels of land along this corridor has ballooned since the approved plan from $30 million in 2020, to $73 million in 2024. Provincial Supporting funds for land acquisition projects to support transit comes from the Strategic Land Acquisition Fund. This Fund is also committed to purchase land for four new proposed schools in the HRM.
How We Move Forward
Increase the amount of funding for the Provincial Strategic Land Acquisition Fund to be able to fund projects recommended under the Joint Regional Transportation Agency’s Regional Connectivity Report and newly proposed schools.
Regional Connectivity
Where We Are
Halifax and its surrounding communities face challenges with regional transportation connectivity, which impacts mobility and economic growth. Limited public transit options between urban and rural areas hinder access to employment, education, and healthcare for residents outside the urban core. Inadequate infrastructure like a lack of regional transit systems, further exacerbates the issue, leading to reliance on personal vehicles.
How We Move Forward
Implement the Regional Transportation plan developed by the Joint Regional Transportation Agency (JRTA). Ensuring efficient flow of goods and people will be vital for ensuring efficient, sustainable, and equitable mobility across the region. By coordinating efforts among multiple municipalities, stakeholders, and service providers, such a plan can address current transportation gaps, reduce congestion, and improve access to essential services, employment, and education.
Key Growth Infrastructure
Housing Infrastructure Costs
Where We Are
New housing developments require significant planning and supportive infrastructure to create new areas for housing like roads, water, wastewater and sewers, transit infrastructure, and schools. This will require funding and collaboration from all three levels of government.
How We Move Forward
Defer a portion of the mandatory provincial taxes from municipalities for the use of investments into housing related infrastructure (roads, water, wastewater/sewers, and transit infrastructure)
Healthcare Infrastructure
Where We Are
From January 2021 to January 2024, Nova Scotia’s population has grown by 58,600 people, with 72% (42,300) concentrated in Halifax. This rapid increase in population has created significant pressures on our healthcare system. And despite significant investments and improvements in many areas over the past few years, there are still shortfalls in access to family doctors, emergency room outcomes, and long-term care availability. Healthcare is currently Nova Scotia’s largest budget item at $5.5 billion in estimated spending.
How We Move Forward
Ensure there’s a long-term integrated plan that balances healthcare spending with the necessary spending to support the critical infrastructure that keeps the economy growing in a sustainable and affordable way for all Nova Scotians.