NOVA SCOTIA: Alberta has once again claimed the highest overall grade in the Canadian Federation of Independent Business (CFIB)’s 16th annual Red Tape Report Card, released Jan. 28 during Red Tape Awareness Week.
Ontario and Nova Scotia followed closely behind through continued initiatives to improve their regulatory environment.
In stark contrast, Manitoba plummeted to last place with a failing grade after repealing its “one-for-one” rule in 2024 and refusing to restore the Regulatory Accountability Act—moves that significantly undermined transparency and progress.
“We’ve seen some governments make impressive strides towards regulatory accountability and reducing unnecessary rules, while others have slipped backwards,” said Keyli Loeppky, CFIB’s director of interprovincial affairs.
“At a time when global trade tensions are squeezing entrepreneurs and making it harder to innovate and grow, cutting red tape is more critical than ever.
“Every unnecessary rule is another obstacle to competitiveness. This year’s grades show there’s still a lot of work to do to free up time and resources so business owners can focus on growing, competing, and boosting Canada’s productivity.”
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The 2026 Red Tape Report Card grades:
| Jurisdiction | Regulatory Accountability (40%) | Regulatory Burden (40%) | Political Priority (20%) | Wait times and service standards (Bonus 2%) | Overall Score and Grade | ||||
| Alberta | 8.9 | A – | 9.2 | A | 10.0 | A | 5.0 | 9.3 | A |
| Ontario | 8.9 | A- | 8.3 | B+ | 10.0 | A | 10.0 | 9.1 | A |
| Nova Scotia | 8.8 | A- | 8.5 | B+ | 10.0 | A | 10.0 | 9.1 | A |
| British Columbia | 8.9 | A – | 9.0 | A | 7.0 | C | 5.0 | 8.6 | B+ |
| Quebec | 8.8 | A- | 6.9 | C | 10.0 | A | 10.0 | 8.5 | B+ |
| Saskatchewan | 8.0 | B | 8.7 | A- | 6.5 | C- | 5.0 | 8.1 | B |
| Federal | 6.6 | C | 7.1 | C+ | 7.5 | B- | 10.0 | 7.2 | C+ |
| Prince Edward Island | 7.0 | C | 6.8 | C | 6.5 | C- | 5.0 | 6.9 | C |
| New Brunswick | 6.4 | C- | 6.4 | C- | 5.5 | D | 0 | 6.2 | C- |
| Manitoba | 3.0 | F | 6.6 | C | 1.0 | F | 0 | 4.1 | F |
| Newfoundland and Labrador* | – | – | – | – | – | – | – | NA | NA |
*Due to a change in government in Newfoundland and Labrador CFIB has assigned the province a status of “NA” (Not applicable) in lieu of a grade in the political priority section. As a result, the province is also marked as “NA” for the overall grade in this year’s report card.
“In uncertain times, governments can’t control global markets or inflation, but they can control red tape,” said SeoRhin Yoo, senior policy analyst for interprovincial affairs at CFIB and report card co-author.
“Every needless form, permit, or delay drives up costs and wastes time for Canadians and Canadian businesses. By simplifying rules and speeding up approvals, governments can lower costs, boost productivity, and give Canadians more time for what matters.”
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The 2026 Red Tape Report Card grades governments in three major areas of regulatory performance.
- Regulatory accountability, which considers whether governments are measuring regulation and setting regulatory constraints.
- Regulatory burden, which includes indicators such as the number of regulatory restrictions in each jurisdiction.
- Political priority, which looks at clear indications that red tape reduction and regulatory modernization are priorities for the Premier/Prime Minister and Executive Council/Cabinet.
This year’s report card has a bonus indicator based on whether governments have published permit, form and application wait times and implemented a service standard associated with each – an indicator representing accountability and transparency.
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Other notable progress includes Quebec’s impressive two-for-one rule, which actively reduces its overall regulatory burden, and renewed momentum at the federal level.
Ottawa has launched a dedicated red tape reduction office and required all departments to deliver a 60-day report outlining future initiatives to cut unnecessary regulations.
These steps signal a positive shift, but sustained action will be key to turning commitments into real results for small businesses.
This year’s Red Tape Awareness Week is presented in partnership with Intuit QuickBooks.
To learn more, visit cfib.ca/redtape.