Canada's independent business owners are hoping for more help to cope with the incoming winter season
Winter will soon be upon us but it’s been a cold year overall for Canada’s thousands of independent businesses.
They will be looking to the Throne Speech next week to deliver some measures that will help them bounce back from the devastating trading environment of 2020 and survive the long winter season ahead.
According to a new poll from the Canadian Federation of Independent Businesses, a more competitive tax environment is top of the wish list (74% of respondents said this) beating a broad-based recovery plan for the economy (69%).
“Business owners have endured a lot over the past six months, from closures to devastatingly low sales and new costs, and now they’re facing a long and uncertain winter. They need to know the government is behind them with policies that will support their survival, not just in the short term, but long term as well,” said Laura Jones, Executive Vice-President at CFIB.
A vital part in competitive taxation is delaying all planned increases in federal taxes such as the CPP and carbon tax; and talking with small businesses before making any changes to Employment Insurance.
“Small businesses understand the need to have larger than normal deficits to deal with COVID-19 but don’t want to see extra spending outside of that. They want a strong focus on economic recovery, which includes keeping today’s and tomorrow’s taxes reasonable. Now is not the time to put in place costly new programs that will result in tax hikes down the road,” added Jones.
Small businesses’ other top priorities for the Throne Speech include keeping government spending under control (65%) and reducing red tape (53%).
Risk of closure
Without further supportive measures, CFIB says that 1 in 7 businesses are at risk of closure and is calling on Ottawa to expand the Canada Emergency Business Account (CEBA) to $60,000, with a 50% forgivable portion, and overhaul rent assistance, making funds available directly to tenants, rather than relying on landlord participation.
“I can’t stress enough how difficult the fall will be for small firms who continue to face low revenues and worries about a second wave. A Throne Speech with a strong focus on small business priorities will give them some much needed reassurance that government will continue to be there to help,” concluded Jones.
