Hi ,
Restaurants Canada CEO Kelly Higginson was an invited guest as Ontario Finance Minister Peter Bethlenfalvy delivered Ontario’s Budget yesterday.
The full budget can be found here.
Alcohol Update - Of direct impact to many of our members, the Government re-affirmed that it will soon increase the LCBO discount for restaurants and bars from the present 10% to the new rate of 15%. The discount will remain in place until the end of the year. The government will move to a new wholesale model in January 2026, and details are still under consideration. This will continue to be a lobbying focal point for Restaurants Canada.
In interim, the Government announced targeted cuts to taxes on alcohol produced by smaller providers. (Details can be found on pages 126 and 227).
The Budget recapped a series of welcomed announcements made by the Government of Ontario in recent months, and included some new ones:
A promised second WSIB premium disbursement (with $4B in distributions total, over two distributions, including one already paid out this year). In aggregate, we believe this means relief of roughly $7K to $10k per average restaurant location. (see page 26 of the Budget)
Providing a six-month interest- and penalty-free period for any Ontario businesses that choose to defer payment under select provincially administered taxes. (see page 25)
Making Ontario’s gas tax cut permanent and removing road tolls on Highway 407 East, measures that will help restaurants by reducing operating costs and protecting discretionary consumer spending. (page 224 of the Budget)
A series of measures that demonstrate leadership in working with other provinces to eliminate interprovincial trade barriers. (see page page 44)
Creating the new Protecting Ontario Account, a fund of up to $5B to provide businesses with critical support to protect jobs, transform businesses, grow strategic sectors of the economy, and support businesses affected by tariff related disruptions. (see page 26)
Investing $20M in 2025-26 to mobilize new training and support centres, providing immediate transition supports for more laid off workers, including those impacted by US tariffs. (page 27)
Up to $40M in grants through the new Trade Impacted Communities Program, supporting projects that help communities and local industries respond to trade disruptions. (page 27)
An additional $1.3B in support to businesses over three years by temporarily enhancing and expanding the Ontario Made Manufacturing Investment Tax Credit (OMMITC), helping qualifying Canadian Corporations and non-Corporations increase the competitiveness and resilience of Ontario’s manufacturing sector. (see page 32)
Allocating $600M to the Invest Ontario Fund to increase its responsiveness to current economic challenges and ensure Ontario stays competitive globally when attracting major investments. (see page 34)
$200M through the new Ontario Shipbuilding Grant program to help drive Ontario’s competitiveness. (see page 35)
Introducing the Ontario Grape Support Program to help grape farmers and wineries by increasing the number of Ontario grapes in wine bottles. The program will provide up to $35 million in annual support to eligible wineries beginning in 2025–26 and until 2029–30, with total program funding of $175 million. This program is anticipated to double, on average, the percentage of Ontario grapes in blended wine. (see page 59)
Extending and enhancing the VQA Wine Support Program to $84 million in annual support to wine producers, with total program funding of $420 million over the next five years. (see page 60)
The government is also making investments to fight organized crime, guns, gangs, and violence. (see page 98)
The government is supporting small business through a series of programs that aim to help young entrepreneurs and businesses dealing with succession planning. (see page 63)
These measures come in addition to other important actions this government has taken over the past year that have helped our industry, including: the freezing of alcohol taxes, the Ontario portion (eight of the 13 per cent) HST holiday; and $1.4M in funding to Restaurants Canada for training grants.
I will include a more detailed analysis as part of our next CEO note, scheduled for release on May 26th.
Best,
Kris
