Runaway Train: $3.6B in Excess Municipal Spending Driving Up Property Taxes Across B.C., says new report
B.C. property taxes soared 94%—outpacing inflation and national trends
Vancouver, Sept. 18, 2025 (GLOBE NEWSWIRE) -- Municipal operating spending has surged over the past decade, pushing property taxes higher and worsening affordability pressures for families and businesses, according to a new report released today by the Business Council of British Columbia (BCBC).
The report, Runaway Train: A Closer Look at the Exceptional Growth in B.C. Municipal Spending, found that 78 per cent of B.C. municipalities increased inflation-adjusted spending faster than municipal population growth between 2013 and 2023. The result was $3.6 billion in “excess” spending ultimately borne by households and businesses through higher property taxes and other fees.
The evidence is striking: property taxes on owner-occupied homes rose 94 per cent from January 2010 to July 2025. This was more than double the rate of overall CPI inflation (42 per cent) and nearly double the rate of property tax inflation nationally (54 per cent).
“Municipal spending across B.C. has become a runaway train powered by taxpayers’ dollars,” says Jairo Yunis, BCBC’s Director of Policy. “Over the past decade, municipalities have spent $834 per capita more than what municipal population growth and CPI inflation would suggest is warranted. Most of the “excess” spending has been on “core” responsibilities like policing, sanitation, parks, transit, and administration. Meanwhile, spending on non-traditional responsibilities such as health, housing, and social services has skyrocketed, despite these areas traditionally being of provincial responsibility.”
These trends should raise questions about whether there has been an implicit downloading of responsibilities by the province, a decision by municipal leaders to broaden their mandate, or an inefficient duplication of activities between provincial and local governments.
“Unless residents and businesses are seeing exceptional improvements in service quality, municipalities appear to be becoming less efficient in delivering core services over time. It is also possible they have become distracted by scope creep into areas of provincial responsibility,” says David Williams, BCBC’s Vice President of Policy.
Metro Vancouver and beyond
The Metro Vancouver Regional District was also examined given its size and impact on affordability in the region. Nominal operating spending surged from $484 million in 2013 to nearly $827 million in 2023—a 71 per cent increase that far outpaced both CPI inflation and regional population growth. Had Metro Vancouver’s spending tracked population and inflation, it would have risen by only 55 per cent. Real spending on “other services and adjustments”—a vaguely defined category—doubled its share of the budget and grew by over 200 per cent.
Outside the Lower Mainland even smaller communities saw disproportionate increases. Places like Tofino, Comox, Vanderhoof, and Armstrong recorded spending growth more than twice as fast as their population. In Taylor and Fort St. James, real operating spending grew even as populations declined.
Recommendations
The report calls for practical steps to rein in spending and improve transparency, including:
- Anchor municipal spending growth to population and inflation.
- Reinstate an Auditor General for Local Government.
- Establish clear benchmarks for service improvements.
- Review municipal responsibilities to reduce duplication with other levels of government.
- Review Metro Vancouver’s governance and spending.
Fast Facts:
- Nearly four in five (78%) B.C. municipalities increased spending faster than municipal population growth and inflation, resulting in $3.6 billion in excess spending—about $834 per capita (2013–2023).
- Property taxes on owner-occupied homes in the B.C. CPI are up 94% since January 2010, nearly double the national average.
- In the Metro Vancouver Regional District, operating spending grew 71% from 2013 to 2023, far surpassing inflation (28%) and regional population growth (21%).
- Health, social services, and housing spending—areas of provincial responsibility—jumped by 128% over 2013-23, raising concerns about scope creep and costly duplication.
- Real spending on “other services and adjustments,” a vaguely defined category, grew 209% and doubled its share of Metro Vancouver’s budget from 2% to 4%, with little public explanation.
Attachment
Braden McMillan Business Council of British Columbia braden.mcmillan@bcbc.com
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