Co-operatives and Mutuals Canada (CMC) has called on the federal government to scale up support for co-ops and mutuals in the 2026 budget, arguing that the model can strengthen economic resilience, boost productivity and keep wealth rooted in local communities.
In a statement, the apex shared a number of recommendations for budget 2026, which it said ‘provides a strategic path to strengthen economic sovereignty, boost productivity, and anchor wealth within our communities’.
“In an era of uncertainty, co-operatives serve as low-risk, high-impact policy delivery tools,” said CMC. “Whether in urban centers or remote northern communities, co-ops consistently outperform traditional SMEs in innovation and durability.
“This isn’t just an economic theory; it’s backed by public alignment. Canadians consistently rate co-operatives higher than traditional corporations on fairness, accountability, and ‘doing the right thing’. To meet the moment, we must scale this model now.”
Related: Meet Michael Toye, executive director, Co-operatives and Mutuals Canada
Its suggestions span six key ‘strategic pillars’, covering everything from federal investment to tax reform. It calls for:
- A national co-operative investment fund – This would see CA$100M in federal capitalisation released over five years in order to scale domestic ownership and provide ‘patient capital’.
- Expanding the Small Business Deducation – CMC has called on the government to amend Section 125 of the Income Tax Act to level the playing field for co-operative entrepreneurs and remove structural barriers to co-ops reinvesting in local jobs and infrastructure.
- Permanent tax relief for worker co-ops – The apex wants the government to make a $10m capital gains exemption for sales to worker co-ops permanent. It links this to $2tn in assets set to change hands as owners retire, stating a need for these assets to remain in Canada rather than being ‘absorbed by private equity’.
- Social procurement measures – It has recommended the government establishes a ‘preferred supplier’ target for co-ops within the Buy Canadian framework, which would effectively prioritise co-ops in federal contracts in order to ‘build local wealth’.
- National data infrastructure – CMC wants the government to invest in a co-operative knowledge and innovation hub which would measure the true scale of the co-op sector’s $52bn impact.
“The co-operative sector is a $52bn engine ready to advance the Build Canada Strong agenda,” said CMC in a statement. “However, inaction carries a cost: further erosion of public trust, weaker local economies, and higher long-term expenses. By making co-ops easier to finance, procure from, and measure, budget 2026 can unlock a more resilient and inclusive future for all Canadians.”
View CMC’s full proposed roadmap here
