Commentary
By Tegan Hill
Thousands of people are leaving British Columbia and it's no wonder why---high living costs (namely, unaffordable housing) and record-high healthcare wait times. The B.C. government's fiscal position has also significantly deteriorated with record-setting deficits, massive government debt and no tax relief in sight.
In 2023/24 (the latest year of available data), for the first time in more than a decade, more Canadians left B.C. (9,199, including 3,958 working-age Canadians (aged 18-64)) than moved to it. In other words, due to inter-provincial migration, B.C. is losing workers who provide revenue to the government (in personal income and other taxes) and cost less (e.g. in healthcare) than their older counterparts.
Unfortunately, it seems trends are continuing. In the Eby government's 2025 budget, the finance minister warned that the province has continued to experience an outflow of Canadians, with thousands leaving B.C., particularly for Alberta.
So, why are British Columbians leaving the province?
For starters, B.C. is on track to become one of the most highly indebted provinces in Canada. The Eby government will run the province's largest deficit on record at a projected $10.9 billion (inflation-adjusted) in 2025/26, and after factoring in borrowing for long-term infrastructure projects, total provincial debt will more than triple since 2017 when the NDP government took office, reaching $208.8 billion in 2027/28---that's $36,413 per British Columbian.
Government debt accumulation has real impacts on everyday British Columbians. Indeed, taxpayers today and in the future bear the burden of increased government debt through increased government debt interest costs---projected to reach $1,247 per British Columbian in 2027/28---and potentially higher taxes. Debt interest costs consume taxpayer money that could otherwise be used for services such as health care, while higher taxes, or even the threat of higher taxes, discourage business investment, job creation, and ultimately stifle economic growth.
Taxes have also increased for British Columbians over the past decade. On the personal income tax front, for example, the NDP government in 2018 raised the top personal income tax rate from 14.70 percent to 16.8 percent-then, in 2020, raised it further to 20.5 percent. Consequently, B.C. now has the fourth-highest top combined (federal/provincial) personal income tax rate in North America.
High tax rates discourage skilled workers, doctors, entrepreneurs and business owners from locating and staying in the province. And again, the government's massive deficits and debt accumulation signal that further tax hikes may be on the way.
On the housing front, B.C. has some of the least affordable housing in Canada. According to a 2023 survey, 62 per cent of mortgage holders are worried about how to pay their mortgages, while 58 per cent of renters are worried about their ability to pay rent. On health care, British Columbians face a median wait of 29.5 weeks for non-emergency (a.k.a. scheduled) care, the longest wait ever recorded since wait times were first measured across the country in 1993.
B.C. has long been among the most desirable provinces to live in, but many British Columbians are now choosing to leave. The Eby government should recognize that its policy choices have an impact. It's time to fix its fiscal mess, meaningfully address unaffordable housing and improve health care in the province.
Tegan Hill is Director, Alberta Policy at the Fraser Institute.
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