Throne Speech 2025

On May 27, 2025, King Charles III delivered the Speech from the Throne. This was the first time since Queen Elizabeth II in 1977 that a reigning monarch has opened Canada’s Parliament. The Throne Speech was prepared by newly elected Prime Minister Mark Carney and outlines his government’s legislative priorities for the Canadian Parliament.

Economic initiatives and tax reform

The government announced a plan to stimulate economic growth and support the middle class, including:

• Reducing the lowest federal income tax bracket from 15 per cent to 14 per cent, effective July 1, 2025.
• Cutting the GST for first-time buyers on homes up to $1 million and lowering the GST on homes between $1 million and $1.5 million.
• Continuing to provide previously implemented childcare and pharmacare programs, as well as the recently expanded Canadian Dental Care Plan.
• A commitment to eliminate all internal trade barriers by Canada Day in an aim to create a more unified Canadian market. It is estimated that internal barriers cost as much as $200 billion a year.
• Businesses in the clean technology sector will see their corporate tax rate cut in half, and the creation of a new fund aimed at attracting investments in zero-emissions products.

Housing and infrastructure

The government plans to invest in affordable housing projects through the creation of Build Canada Homes. This organization’s purpose is to accelerate the development of new affordable housing by investing in the growth of the prefabricated and modular housing industry. The government will also provide significant financing to affordable home builders and reduce municipal development charges in half for all multi-unit housing.

Infrastructure investments will be made in public transit, energy-efficient retrofits, and rural broadband.

Building new relationships with the United States and the world

The actions of the United States have created a fundamental change in our relationship. The Prime Minister and the President of the United States have begun defining a new economic and security relationship between our two countries. The government is working to build stronger relationships with reliable trading partners, such as the European Union. It is the government’s objective to build a coalition of countries that believe in international co-operation and free trade. Canada will be hosting the G7 Summit in June and has invited Mexico to facilitate discussions on strengthening regional cooperation within North America.

Climate change

The Government reaffirmed its commitment to achieving net-zero emissions by 2050. They plan on legislating this goal, as well as investing in clean energy projects like the Atlantic Loop. Manufacturing and natural resources sectors will be supported in their transition to net-zero. As noted above, clean technology businesses will see their corporate tax rate cut in half in order to encourage further innovation and investment in zero-emission products.

Safer and more secure Canada

The government intends to introduce new legislation to enhance our border security. The Canada Border Services Agency will be given new powers to examine exports to prevent the transport of illegal and stolen products. Deployment of scanners, drones and helicopters, additional personnel and K-9 teams are intended to stem the tide of illegal guns and drugs entering Canada.

The government will rebuild the Canadian Armed Forces and boost Canada’s defence industry by joining ReArm Europe. It will also invest in strengthening our presence in the North.

In an effort to keep communities safe, the government will hire 1,000 RCMP personnel, change firearms licensing, and strengthen enforcement of yellow and red flag laws. Those convicted of intimate partner violence and subject to protection orders will have their weapon licences revoked. The rights of law-abiding gun owners will be protected, as will the longstanding hunting traditions of our Indigenous Peoples.

Changes to the Criminal Code will be made to make bail harder for repeat offenders, especially those involved in car theft, home invasions, human trafficking, and drug smuggling.

Financial discipline

Prime Minister Carney is introducing a new fiscal concept – spend less so Canadians can invest more.

Day-to-day government spending that has been growing by nine per cent every year will be reduced to below two per cent. Transfers to provinces, territories, and individuals (social programs) will be maintained. The reduction in the rate of spending will be achieved through cutting waste, avoiding duplication, capping the public service, and improving productivity.

The government intends to introduce measures that promote new investment; aimed at creating better and higher paying jobs.

Conclusion

Canada is facing uncertainty. With uncertainty comes opportunity. Will we seize the moment?

The Throne Speech presents an optimistic view that we will rise and lead during this period of economic and security instability. Canada has the people and resources to step up and show the world that we are leaders. For the good of our country, let’s hope that our leaders, including our provincial premiers, work together to bring a brighter future to all Canadians.