Alberta has once again received the highest overall grade, an “A”, in the Canadian Federation of Independent Business (CFIB)’s 2025 Red Tape Report Card, marking its second consecutive year at the top.
The report, released during Red Tape Awareness Week, assesses Canadian governments on their efforts to reduce regulatory burdens on businesses.
Following Alberta, Nova Scotia and Ontario received high rankings, while Manitoba and Newfoundland and Labrador were given failing grades. Manitoba, in particular, saw a sharp decline from a B+ in 2023 to an F this year after eliminating its Red Tape Accountability Act.
New Brunswick received a “Not Applicable” (NA) status due to the October 2024 government change, with grading set to resume in 2026.
The CFIB evaluates governments in three main areas: regulatory accountability, regulatory burden, and political priority. This year, an additional indicator assessing government housing initiatives was included. The organization emphasizes that excessive regulation hinders business productivity, urging all levels of government to prioritize red tape reduction.
“Many governments have the right frameworks in place, but they need to renew their focus on reducing regulatory burdens,” said Corinne Pohlmann, CFIB’s Executive Vice-President of Advocacy. SeoRhin Yoo, CFIB senior policy analyst, noted that some provinces have made progress while others, like Manitoba, have regressed significantly.
The CFIB, representing 100,000 small and medium-sized businesses across Canada, advocates for policy changes to improve business success.