Tory leader calls government fiscal update 'disgusting'

The federal Liberal government plans to spend over $20 billion more than initially expected in the coming years as it says it will continue efforts to “deliver for the middle class.”

Meanwhile, the opposition Conservatives have labelled the plans as a “disgusting scheme” that will further increase the debt burden on the public.

Deputy prime minister and finance minister Chrystia Freeland delivered her fall fiscal update in the House of Commons Tuesday.

She repeated government moves to build new homes, in part by cutting red tape, crack down on short-term rentals, and remove the GST on rental developments.

“I am today announcing new measures, through our economic plan, to build thousands upon thousands upon thousands of new homes across the country, and to build them faster,” Freeland said. “The federal government owns more land than anyone else in Canada and we’re going to build more homes on it."

Freeland added the government would be cracking down on short term rentals like Airbnb and VRBO that are keeping far too many homes off the market.

In British Columbia, proposed legislation will allow for short-term rentals only in a primary residence and one additional secondary suite. Kelowna is looking at tightening its short-term rental rules.

In response to Freeland's fiscal update, Conservative leader Pierre Poilievre said his party would give the government plans a vote on non-confidence.

“With this $20 billion of costly new spending, this update can be summed very simply: prices up, rent up, debt up, taxes up, time’s up, “ Poilievre said. “Common sense Conservatives will vote non-confidence on this disgusting scheme. After eight years of this prime minister, he is not worth the cost.”

In her speech, Freeland took aim at Poilievre's assertion that the country is falling apart.

"Canada is not and has never been broken. We are the imperfect but remarkable creation of generations of Canadians who did their part to build a better country — in good times and in tough times, calloused hand by calloused hand."

On housing, the federal government is earmarking $15 billion for low-cost loans to developers as well as $1 billion for affordable housing.

It is also expanding its recently announced measure to remove GST charges off rental developments to include co-op rental housing.

The fall economic statement reaffirms the federal government's intention to tie federal infrastructure dollars to housing action by local governments.

The federal government projects the deficit for the current fiscal year to come in at $40 billion, largely unchanged from its spring budget forecast, with deficits shrinking, but not disappearing, over five years.

The update adds $20.8 billion in new spending since the spring budget over five years, with some new measures designed to boost the housing supply, including rental units and affordable housing.

With files from The Canadian Press