Business Voice

Uncertainty, cautious optimism for 2025

Topics: Cover Story

Published: February 2, 2025

Contributors: Emily Bednarz

This year’s business and economic outlook 

Business is full of challenges, and we navigate them every day,” says Matt Rogers, President of Bishop’s Cellar—a leading private wine, beer, and spirits store located on the Halifax waterfront. 

Like many business owners in Halifax, Rogers is coping with changing consumer habits and a sense of uncertainty about what’s to come in 2025. “For us, particularly in the wine industry, consumption patterns are changing,” he says. “People are consuming less, and everything is more expensive, which impacts everyone’s disposable income. Right now, we’re planning for the summer, so we’re thinking about what the next few months will look like and how that will impact our summer plans. It’s a constant, ever-changing process.”  

With political and economic uncertainty in the air, we turned to local experts for insights. 

Cathie O’Toole is Chief Administrative Officer with the Halifax Regional Municipality, where she is tasked with implementing the policies and decisions made by Halifax Regional Council. She also provides leadership and direction to municipal departments. “Like a CEO in the private sector, I have to work to ensure efficient and effective delivery of services, oversee financial management and operational performance,” she explains.   

An accountant by trade, O’Toole aims to improve the quality of life for residents in HRM. “While I am CAO, I hope to achieve improvements in employee engagement and resident satisfaction,” she says. “I’ve lived in HRM my entire life and am deeply committed to the region. I enjoy my job, the people I meet, and the opportunity to make a difference.”  

Pam Mood is Mayor of the Town of Yarmouth and President of the Nova Scotia Federation of Municipalities (NSFM)—a non-profit organization that represents Nova Scotia’s 49 municipalities in one, unified voice. “Our mission is to empower municipalities by advocating for their interests, fostering collaboration, and providing the tools they need to serve their communities effectively,” says Mood. “We work closely with provincial and federal governments, as well as partners like the Association of Municipal Administrators Nova Scotia, to address shared priorities. Whether influencing legislation, delivering training, sharing best practices, or administering funding programs, we are dedicated to helping municipalities thrive.” 

Cathie O’Toole (left) is Chief Administrative Officer with the Halifax Regional Municipality. Pam Mood (right) is Mayor of the Town of Yarmouth and President of the Nova Scotia Federation of Municipalities (NSFM).

Growth adding strain to housing and infrastructure  

When reflecting on last year, O’Toole points out that 2024 was a good year for Halifax: GDP grew by 1.7%, unemployment decreased, and inflation stabilized. “HRM experienced significant population growth,” she says. “The latest population numbers released in January indicated the population grew by 2.4%, adding 11,594 residents last year. HRM’s population is now 502,753. This growth was driven largely by international migration, and while it is nice to see that there was a younger demographic moving to the area, it is creating significant service pressures on the municipality.” 

Municipalities across Nova Scotia are feeling similar pressures on service and infrastructure. “In 2024, key trends included a stronger focus on climate adaptation, sustainability, economic growth, and population increases,” says Mood. “Municipalities invested heavily in infrastructure upgrades to accommodate growth while also planning for the future by mitigating flooding, improving energy efficiency, and reducing greenhouse gas emissions.” 

Mood adds that municipalities were challenged by competing priorities. “Housing affordability and availability remained critical priorities, as communities worked to meet diverse resident needs,” she says. “However, municipalities faced significant challenges in financing these priorities amidst competing demands.” 

Rogers acknowledges the challenge local governments are facing with growth. “If we’re going to grow, we have to make sure we support it in all the ways necessary,” he says. “It’s a challenging task for government. Building ahead to manage growth and then catching up with it once it’s here is not an easy thing to do.” 

The municipality’s work this year will be responsive to concerns identified by residents and our new Mayor and Council, including public transit, transportation, and safety, says O’Toole. The municipality will be welcoming a new Executive Director for Halifax Transit and staffing an office for Major Project Delivery as well as offices to focus on Strategic Transportation and Infrastructure Planning. 

O’Toole explains that new housing policies require renewed attention to infrastructure. “The planning amendments made as a result of the Housing Accelerator Fund, the Regional Plan update, and the Suburban Plan—under development—create the opportunity for significant additional incremental growth which will help with some of the housing challenges but create infrastructure challenges,” she says. “The Strategic Transportation and Infrastructure Planning Office will be working to get a handle on identifying and prioritizing the infrastructure investments we need to make, and the Major Projects Office will be delivering capital projects that meet the $100 million or complexity threshold. Coming out of a successful Cogswell Redevelopment project, our next major projects on the horizon are the Windsor Street Exchange and the Mill Cove Ferry project.” 

Matt Rogers is President of Bishop’s Cellar—a leading private wine, beer, and spirits store located on the Halifax waterfront.

Political uncertainty aggravating anticipated challenges  

Rogers shares what he anticipates for business in the coming year. “I think we’re probably like most businesses—it’s a bit uncertain,” he says. “I would say we’re trying to be cautiously optimistic. We’re doing everything within our control, but there are a lot of outside factors, and we don’t know how they’re going to play out yet.”  

While he’s encouraged by what he sees locally, Rogers explains that his sense of uncertainty comes from big-picture concerns. “When we look around, we see that Halifax is growing, downtown is growing, and those are all positive signs,” he says. “But the broader conditions could play a big role. With the election and with our neighbours to the South, any potential new tariffs could impact us. We won’t be directly impacted by tariffs, but they will affect the economic outlook and consumer behaviour, which will, in turn, affect us.”  

O’Toole explains that even with a sense of uncertainty for what’s to come this year, the municipality is forging ahead, focusing on creating a new Strategic Priorities Plan to guide the municipality’s work through 2026-2030. The plan would place more emphasis on the items that are top priorities for residents and businesses. “We can’t be all things to all people and need to use limited resources to the best effect while working effectively with other levels of government,” she says. “There has been huge change within the municipal government with the last election. We have just come through a municipal election, a provincial election, and a federal election is on the horizon.” 

Maintaining good working relationships with all levels of government is key for O’Toole. “Whenever there are changes in government, we need to work hard to make sure priorities are understood and aligned, and effective working relationships are established and maintained,” she says. “Housing and homelessness will still be significant issues where we need to work closely with the Provincial government.” 

Mood also highlights these focus areas, emphasizing the financial needs of municipalities. “The most significant challenge for municipalities in 2025 is balancing the demand for essential services and infrastructure with limited financial resources,” she says. “This includes addressing housing shortages, maintaining aging infrastructure, and adapting to climate change—all while ensuring fiscal sustainability.” 

For Mood, uncertainty also adds to anticipated challenges this year. “Workforce retention and recruitment, especially for skilled municipal positions, pose considerable hurdles,” she says. “Additionally, rising costs of goods and services continue to outpace revenue growth, putting pressure on municipal budgets. These challenges are further exacerbated by policy uncertainties and the need to balance revenue generation with affordability for residents and businesses.”  

Kerry Lynch is the Owner of the Brewery Park Hotel, Brewery Loft, and the Black Forest Retreat.

Reducing taxes and red tape 

Kerry Lynch is a developer and owner of the Brewery Park Hotel and the Brewery Loft, which are both located in Halifax, as well as the Black Forest Retreat in Mahone Bay. Lynch points out that the challenges he’s facing this year are familiar ones. “Property taxes and red tape travelling through municipal approval systems are far more of a challenge recently than the cost of goods and staffing issues which all businesses currently face,” he says.  

Rogers adds that the recent tax holiday in December and January had a positive impact on their business, particularly on wine sales. “We saw people take advantage of the savings, especially on premium products,” he says. “Customers saw the opportunity to save 15% and either buy a nicer bottle of wine or stock up their cellar to make the most of the savings.” 

While O’Toole states that “it is too early in the budget process this year to comment on taxes,” she points out that last fiscal year, the municipality implemented a new tiered commercial tax system. Coming into effect on April 1, 2023, the policy created five tax areas and a tiered rate system, replacing the existing commercial tax structure of Urban, Suburban and Rural. 

Fiscal stability and tax policy are top of mind for Mood. “NSFM will advocate for enhanced fiscal tools and funding programs to help municipalities grow sustainably,” she says. “We remain committed to supporting municipal autonomy and collaborating on housing initiatives, including leveraging federal programs like the Housing Accelerator Fund. Our efforts will focus on fostering innovation in tax policies and planning strategies, advocating for infrastructure investments, promoting economic diversification, and supporting research that aligns with municipal priorities.” 

Focusing on engagement, collaboration, and community 

Continuing to collaborate and develop partnerships is key for Mood and the work of the Nova Scotia Federation of Municipalities. “NSFM is dedicated to fostering collaboration and innovation among Nova Scotia’s municipalities,” she says. “Our partnerships with other orders of government have demonstrated the value of positive relationships in advancing municipal interests. As we look to the future, we are proud to serve as the voice of Nova Scotia’s municipalities and remain committed to building vibrant, sustainable communities for generations to come.” 

For O’Toole, direct engagement is essential in promoting growth and supporting the local economy. “We are trying to engage with the business community to ensure we understand their challenges, and to share information about our challenges,” she says. “When I became CAO, the municipality re-joined the Halifax Chamber of Commerce, and we are meeting regularly with the heads of the Business Improvement Districts. We have a procurement strategy that includes a Social Value Framework, which aims to make positive contributions to the local economy and community.” 

O’Toole adds that the municipality supports organizations like the Halifax Partnership. “Their work helps local businesses succeed and promote Halifax globally,” she says. “They offer services such as SmartBusiness, which helps businesses navigate government regulations and procurement processes. Recently, Halifax Regional Police have led initiatives to reduce retail theft, which I hope will continue and will help local businesses.” 

Collaboration is a key focus for Lynch and his businesses this year. “We are currently working closely with Tourism Nova Scotia and Discover Halifax staff to keep up with the events schedule for 2025 and promotional material,” he says. “We have also been collaborating with Tourism Nova Scotia on seasonal packages at Brewery Park Hotel with partners Stillwell and The Brasserie.”  

Despite uncertainty on the horizon, Lynch expresses optimism for the coming year. “We are looking forward to 2025 with renewed focus and energy,” he says. “As business travel comes back to life, our main priority is connecting with businesses to provide short- and long-term accommodations for travelling staff, both in the private and public sectors. The seasonality of the tourism industry in Nova Scotia is a challenge but with more businesses in Mahone Bay staying open year-round and attractions like Oceanstone and Sensea, we see a bright future.”  

Rogers echoes Lynch’s energy and optimism. “We’re excited because Halifax continues to grow and evolve,” he says. “While there’s a tendency to focus on all the negatives, we need to look at the opportunities as well. Halifax is a growing city with more people moving in, and businesses are going to benefit from that growth. Looking ahead, that’s always what excites us, and we’re eager to see how things unfold.” 

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