Liberals to deliver economic update on Nov. 30
The federal government's latest lifeline to cash-strapped businesses landed with a swirl of anxiety as companies face an uncertain future that may become clearer next week when the Liberals table a long-awaited economic update.
The duelling announcements Monday — applications opening for a new commercial rent-relief program and an update on the health of federal finances to come Nov. 30 — marked government efforts to provide some certainty in the face of what Finance Minister Chrystia Freeland described as a tough season on the way.
The government has not tabled a budget for this fiscal year, but in July delivered what it called a “fiscal snapshot” that estimated the deficit was heading for a record of $343.2 billion. That figure doesn't include added spending since July, nor many of the promises the government has made since, such as the first steps toward a national child-care program that should be included in next week's update.
The Liberals have also said the update will provide the government's outlook for the economy, and spending guidelines to avoid deficits from spiralling out of control.
Expectations are that the economy will take until at least 2022 to get back to pre-pandemic levels, with some scarring from closed businesses and unemployed workers taking even longer to heal. Freeland is faced with providing a plan for managing both the nearterm impacts of the pandemic and mitigating longer-term effects.
“A healthy economy requires a healthy population,” said Goldy Hyder, president of the Business Council of Canada. “It's time for a co-ordinated approach.”
In the near term, the government plans to start flowing rent assistance to eligible businesses by Dec. 4, replacing an earlier rent-support program from the spring that saw little pickup because it relied on landlords to apply for help. The new program
covers up to 65 per cent of rent or commercial mortgage interest on a sliding scale based on revenue declines, with an extra 25 per cent available to the hardest-hit firms.