WHAT PRICE SAFETY HAS ON BUSINESS? HOW CAN BUSINESSES AFFORD TO KEEP THEIR DOORS OPEN? (2026)

Issue

Crime affecting small businesses in cities and towns across B.C. has increased, resulting in financial losses, safety concerns, and reduced economic vitality in multiple commercial districts in small, medium and large centres across the province. BC Budget 2026 has exacerbated these effects.

Background

Small businesses experience disproportionate impacts from theft, vandalism, and threatening and violent incidents. Unlike larger firms, they often lack resources for private security and/or loss absorption. Repeated incidents raise insurance costs, reduce operating hours, cause staff and customer attrition, and can lead to permanent closures, undermining local economies.

Tourists and local residents react to the realities by staying away from certain commercial districts, especially at night, further damaging taxis, rideshare businesses, nightclubs, theatres and sports events.

Eighteen business groups demanded that the B.C. government halt plans, announced February 24, 2026,  to expand the Provincial Sales Tax to include security services. The increase would take effect October 1, 2026. The Save our Streets Coalition calls the 7% PST on private security costs punitive and unfair.[1]

While the government’s 2025 C-STEP program enhances police response to crime, the $5 million initiative is considered too narrow to benefit most of the province’s business communities. As well, the relatively minor impact made by the 2024 Securing Small Business Rebate program was onerous and did not meet the business needs in the most effective way.

Local Context

• 40% of B.C.’s 55,000 businesses report annual losses exceeding $5,000[2]. Commercial crime incidents in B.C. in aggregate are not available.
• In Kelowna, a temporary overnight security patrol conducted by a private security firm has been launched as a response to local community feedback as well as refunds for preventative security measures, all funded through the municipality.
• Numerous B.C. businesses have ‘given up’ reporting crime incidents due to their frequency[3].
• 57% of small businesses reported being directly impacted by crime in 2024.
• Retail-sector estimates place total annual losses due to theft and related crime in British Columbia at over $1.4 billion
• Approximately 60% of business owners report concerns for the safety of themselves, their staff, and customers 47% of businesses have altered their operations in response to crime
• Approximately 60% of business owners report concerns for the safety of themselves, their staff, and customers 47% of businesses have altered their operations in response to crime

Policy Objectives: Improve safety and economic resilience for small businesses in support of overall commercial area health

The Chamber Recommends

That the Provincial Government:

1. Convene a taskforce to explore immediate tax relief for affected businesses.
2. Remove private security firms from the PST expansion in the February 17 BC Budget.
3. Address the issue of repeated prolific offenders and remand pressures with increase in Crown Counsel capacity.
4. Ensure accessible mid- and long-term addiction treatment facilities are accessible to better address the health needs of those who turn to crime to fund their addictions.