UK leader mounts last-ditch bid to win Brexit deal backing

LONDON — British Prime Minister Theresa May offered both a promise on workers’ rights and a reassuring letter from European Union leaders on Monday as she implored British lawmakers to support her floundering Brexit deal.

But the British leader had few concrete measures up her sleeve a day before a vote in Parliament which looks likely to see her Brexit deal rejected. A defeat on Tuesday would throw Brexit plans into disarray just weeks before the U.K. is due to leave the bloc on March 29.

May warned that the only alternatives to her agreement were an economically damaging, chaotic “no-deal” exit from the EU or a halt to Britain’s departure that would defy British voters’ decision in 2016 to leave the bloc.

In a speech Monday at a ceramics factory in the central England city of Stoke-on-Trent, May said “people’s faith in the democratic process and their politicians would suffer catastrophic harm” if her deal is rejected and Brexit was abandoned.

Having Britain leave the EU without a deal “would cause turbulence for our economy, create barriers to security co-operation and disrupt people’s daily lives,” she said.

“The only deal on the table is the one (members of Parliament) will vote on tomorrow night,” May said.

Britain and the EU reached a hard-won divorce deal in November, but the agreement has run aground in the U.K. Parliament. May postponed a vote on the deal in December to avoid a resounding defeat, and there are few signs the deal has picked up much support since then.

Several previously opposed British legislators have swung behind May’s agreement in the last few days, but they remain outnumbered by those determined to vote against it.

In a bid to win support, May sought reassurances from EU leaders about the deal’s most contentious measure — an insurance policy known as the “backstop” that would keep Britain in an EU customs union to maintain an open border between Northern Ireland and EU member Ireland after Brexit.

Pro-Brexit lawmakers worry that Britain could be trapped indefinitely in the backstop, unable to strike new trade deals around the world.

In a letter to May published Monday, European Council President Donald Tusk and European Commission President Jean-Claude Juncker offered an assurance that the backstop “would only be in place for as long as strictly necessary.”

They promised that the EU would work quickly to strike a permanent new trade deal with Britain that would render the backstop unnecessary.

But the letter also reiterated the bloc’s refusal to renegotiate the divorce deal. The two men said “we are not in a position to agree to anything that changes or is inconsistent with the Withdrawal Agreement.”

May will make a statement to Parliament later Monday expanding on the EU commitments.

She also sought to win opposition Labour Party lawmakers’ support for her Brexit deal by promising that her Conservative government won’t try to water down environmental standards and workers’ rights after Brexit.

Some opposition lawmakers’ suspect that the government plans to reduce the protections in a bid to boost the economy after Britain leaves the EU.

Without a Brexit deal, Britain faces an abrupt break from the EU, a scenario that economists warn could batter the British economy and bring chaotic scenes at borders, ports and airports.

If May’s deal is rejected, she has until the following Monday to come back to Parliament with a new proposal. So far, May has refused publicly to speculate on a possible “Plan B.”

Some British lawmakers are exploring ways to use parliamentary procedures to wrest control of the Brexit process away from the government, so that lawmakers by majority vote could specify a new plan for Britain’s EU exit.

But with no clear majority in Parliament for any single alternate course, there is a growing chance that Britain may seek to postpone its departure date while politicians work on a new plan.

Jill Lawless, The Associated Press

The Canadian Press

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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

Published on January 16, 2025

Todayville

From the Canadian Taxpayers Federation

By Carson Binda

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

Published on January 13, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.