On November 5, 2026, the Government of Canada presented Budget 2026: Masters of our Destiny. The document’s title echoes Quebec’s Révolution tranquille, but also the Antigonish movement and the story of how the Maritime provinces built economic independence and self-reliance through co-operatives and credit unions.
As Canada seeks to strengthen its economic sovereignty, diversify trade relationships, and improve productivity, one question deserves greater attention: How can we ensure that all Canadians, in communities from coast to coast to coast, benefit from the economic transformation currently underway?
The answer is clear. Co-operatives, credit unions, caisses, and mutuals are uniquely positioned to help Canadians navigate uncertainty while building a more resilient and prosperous economy.
Stronger Communities, a Stronger Economy
Economic resilience cannot be measured by GDP growth alone. It must also be reflected in the ability of communities to retain businesses, provide affordable housing, create good jobs, and build lasting prosperity.
This is where co-operatives, credit unions, caisses, and mutuals make a difference.
Unlike traditional businesses, co-operatives are owned and governed by the people they serve. Their model helps keep economic decision-making, investment, and wealth rooted in their community. From agriculture and housing to finance, retail, and renewable energy, co-operatives strengthen local economies while contributing to national economic growth.
Their contribution is substantial. Canada Co-op’s Power the Economy: Canada’s Co-operative Advantage Report 2026 highlights a sector that contributes $61.1 billion to Canada’s GDP, supports nearly 746,000 jobs, and is owned by more than 14 million Canadians.
Co-operatives are not simply an alternative way of doing business. They are an established economic model that can help Canada navigate today’s challenges and build a more resilient future.
Budget 2026 Through a Co-operative Lens
While Budget 2026 proposes significant incentives for business investment and entrepreneurship, Canada Co-op notes that several structural barriers continue to prevent co-operatives, mutuals, caisses, and credit unions from competing on equal footing with conventional enterprises.
Canada Co-op welcomes proposed changes to the Bank Act that would provide greater flexibility for qualifying co-operative shareholders to invest in and control federally regulated credit unions.
The organization also recognizes the government’s commitment to expanding non-market housing through an additional $13 billion over ten years for Build Canada Homes.
Still, in its pre-budget submission, Canada Co-op called for a $100-million national Co-operative Investment Fund to support start-ups, business expansion, and conversions to co-operative ownership.
The organization also called for reforms to the Small Business Deduction to eliminate tax disadvantages affecting qualifying co-operative members, as well as stronger recognition of co-operatives and social enterprises within the federal Buy Canadian procurement strategy.
While Budget 2026’s new Canada Growth Incentive includes provisions allowing qualifying business owners to access its capital gains exemption alongside the existing exemption for sales to worker co-operatives and Employee Ownership Trusts, accessible and effective implementation of employee-ownership incentives remain essential as Canada faces a significant wave of economic uncertainty.
Finally, greater federal investment in co-operative data collection and economic impact measurement remains an outstanding priority. Reliable data is critical to ensure that co-operatives are properly reflected in federal economic programs and policy decisions.
Six Priorities to Power Canada’s Economy
Following Budget 2026, Canada Co-op maintains six recommendations designed to strengthen Canadian ownership, encourage entrepreneurship, address affordability, and create a more competitive economic environment for co-operatives.
- Create a Co-operative Investment Fund. An initial federal investment of $100 million over five years would provide much-needed access to repayable capital for co-operative start-ups, expansion, and business conversions.
- Expand access to the Small Business Deduction. Entrepreneurs should not face additional tax barriers simply because they choose a co-operative business model.
- Support business succession through employee ownership. Following the permanent extension of the $10 million capital gains tax exemption for qualifying sales to worker co-operatives and Employee Ownership Trusts, Canada Co-op is calling for clear, accessible, and equitable implementation.
- Strengthen co-operative housing. Affordable housing is fundamental to economic stability and workforce mobility. Canada Co-op recommends prioritizing co-operative housing within Build Canada Homes.
- Put communities at the centre of Buy Canadian. Federal procurement should recognize the economic value created by co-operatives and other social enterprises.
- Build a national co-operative data infrastructure. A Co-operative Knowledge and Innovation Hub would improve the collection and analysis of sector-specific economic data.
Taken together, these recommendations offer a practical roadmap for strengthening Canada’s economic sovereignty, improving affordability, and unlocking investment in communities across the country.
Looking Ahead: From Economic Uncertainty to Community Resilience
Canada’s economic challenges will not disappear overnight. Trade relationships will continue to evolve, businesses will face pressure to adapt, and Canadians will continue looking for greater financial security and stability.
Meeting these challenges will require more than new investments and international trade agreements. It will require an economic strategy that recognizes communities not simply as beneficiaries of growth, but as active participants in creating it.
Canada Co-op stands ready to work with the federal government to advance policies that support co-operative entrepreneurship, expand community ownership, and strengthen the foundations of Canada’s economy.
Because when communities own more of their economy, Canada owns more of its future.