B.C.'s public service has immediately paused all new hiring, citing the need to take bolder actions among fiscal constraints in the public service and the threat of U.S. tariffs.

B.C.'s finance minister Brenda Bailey also announced Thursday, (Feb. 13), that this year's budget won't include the so-called grocery rebate of $1,000 per household. 

Government announced the hiring freeze just before Bailey's appearance to give a pre-budget update before its actual delivery on March 4. She then used the occasion to reveal the rebate promised during the election would not be in the budget, linking that to tariffs that could come into effect on that date.

"The world has changed on us," Bailey said, adding government is hoping for the best and preparing for the worst. "These are very uncertain times and we have to make difficult decisions."

The tariffs would add 25 per cent on the cost of all Canadian goods crossing the border other than energy. The U.S. plans to slap a tariff of 10 per cent on energy and the cost of aluminum and steel would rise by 50 per cent, thanks to tariff stacking. U.S. President Donald Trump Thursday also announced additional tariff measures as part of a larger agenda to revise trading relations. 

Bailey acknowledged the rebate cancellation would be disappointing to British Columbians, many of whom are struggling with cost-of-living issues.

"It's something that we wanted to do and something that we were working on, but that was a moment in time before an unpredictable person was in the White House and threatened our jobs, our businesses and the revenue that we need to power the programs and services that British Columbians want," she said.

"It is no longer the right time to make a new big expenditure." 

Ninety per cent of households would have been eligible for the rebate, which would have cost just under $2 billion. Bailey said government will not spend that money elsewhere.

She also said that if anyone had asked 100 economists before Trump's election, none of them would have predicted he would impose these types of tariffs on his closest trading partner while deliberately harming his own economy.

"It's just truly unfathomable," she said, adding that while Trump has put tariffs on specific industries in the past, the current threats represent something different.

She also rejected the argument that government is using the tariffs as cover for not managing its money well. The most recent figure peg B.C.'s current deficit at $9.5 billion, an historic high.

"We would be wrong to under-estimate the impact these tariffs could have and that we need to take this very seriously and I wouldn't be doing my job if I wasn't doing exactly that." 

Conservative Party of B.C. Leader John Rustad said government is using Trump as an excuse, adding that B.C.'s fiscal situation has not changed.

"The threat of fiscal problems has, but the situation (of B.C.'s finances) has not changed before the election to now." 

Rustad said Eby knew of B.C.'s fiscal problems before the election.

"He knew he was running a $9.5 billion deficit, which I suspect will be far worse," Rustad. "Yet he said he would do this. I guess that was his election bribe and people bought into it. It's unfortunate that he lied to the people in B.C. What he should be doing now is reining in spending, just so that he can find that room to be able to provide tax relief for people, who desperately need it."  

Rustad added that the situation is critical given the rising cost of servicing the debt. 

"We are in a very, very bad situation," he said in calling for steps to accelerate economic growth and diversify trade with provinces inside of Canada and abroad. 

"There is so much we need to get government out of the way and get these things happening in our province, so that we can weather any storm that comes from the Americans," Rustad said. "At the same time, we are going to have to push back on some issues with the Americans, no question." 

Maxwell Cameron, professor of political science at the University of British Columbia, said British Columbians are facing a new world. Reality has eclipsed public policy issues like housing and cost of living that dominated months ago.

"I hear what you are saying that we need to see politicians act in a way that gives us confidence that they are trustworthy, but we must also acknowledge that we are in an unprecedented situation in which we are going to have to pull together," Cameron said. 

"I think voters respect politicians who are honest and direct and tell people what they know to be true, even if that means...some sacrifice."

The hiring pause includes all competitions currently underway and spells out the process for any future hiring. All current and future hiring requests must get approval from Shannon Salter, deputy minister to the premier and head of the BC Public Service before ministries can proceed. Positions must be essential to delivering core government programs with the public service currently working out criteria and processes. 

Only internships supporting reconciliation and equity, diversity and inclusion are exempt from these measures, which mark a step up from measures announced mid-December 2024, when the public service implemented an immediate temporary pause on external hiring.  Government has also launched a spending review. 

BC Public Service employs about 35,000 people. It is not yet clear how much money this personnel move will save the public purse.

Bailey also touched on the larger uncertainty around the budget-making process itself given the various threats. She said government discussed altering the timing of the budget, but decided against it.

"We are in for four years of unpredictability, so to delay with hopes that we will have certainty is an unrealistic expectation," she said. "So we are going ahead with the date we chose. Of course, when we chose, March 4 wasn't also the final day of this alleged 30-day-pause." 

Bailey also said government considered tabling two budgets, but also did not take that route.

"We are doing one, and it is a budget deeply focused on protecting the services that are important to British Columbians and you will see that tabled on March 4." 

Bailey said British Columbians can expect government to continue existing cost-of-living supports. She did not tip her hand about whether the budget will include greater contingencies, so government can protect industries impacted by tariffs. Bailey said B.C. expects revenues raised by Canadian retaliatory tariffs, a federal responsibility, will go toward protecting impacted businesses and individuals.

"That will be the first line of defence," she said. "Our approach is to fill any gaps that might exist after that. "