A government office building in Ottawa, pictured on August 2, 2021. CTV
The federal government has begun a full review of regulations in an effort to cut red tape and simplify how departments and agencies operate. The goal is to remove rules that are no longer needed and improve how services are delivered.
Ministers given 60 days to report
On Wednesday, Treasury Board President Shafqat Ali said that ministers will have 60 days to check the rules in their departments and suggest next steps.
“Rules help keep Canadians safe,” Ali said in a statement. “But they need to be updated to keep working well. Cutting red tape helps our economy grow.”
New office to lead the review
The newly formed Red Tape Reduction Office will manage the review. The office wants to make regulations simpler and easier to understand.
As part of the review, ministers will:
- Remove outdated rules
- Cut overlap with provincial regulations
- Improve how people and businesses access government services
Cost of red tape is high
A recent report by a Canadian business group found that red tape costs businesses a lot of money. In 2024, businesses spent about $51.5 billion dealing with regulations. About $17.9 billion of that came from red tape alone.
Prime Minister supports the plan
Prime Minister Mark Carney also supports the review. He said that the government needs to spend smarter and work faster.
“We want to make government work better,” Carney said. “By cutting red tape, we will help build the best economy in the G7.”
A key promise from the last election
During the last election, the Liberal Party promised to cut red tape. The plan said that all departments, including Transport Canada and Natural Resources Canada, must review their rules and report on progress.
The party also promised to help build data centers in Canada by cutting red tape and improving the country’s AI and energy systems.
What the new office will do
The Red Tape Reduction Office has three main goals:
- Make the system more efficient
- Help businesses grow by removing obstacles
- Lower costs for Canadians and companies
Looking for long-term savings
This new push to reduce red tape comes just two days after the government asked cabinet ministers to find ways to save money.
Starting in 2026, departments must cut their budgets by:
- 7.5% in the first year
- 10% in the second year
- 15% in the third year
These savings will help the government lower its spending over time.
