The Alberta government has “reaffirmed its strong commitment to cutting red tape and modernizing regulations” by topping a national report card for the fourth straight year.
The Canadian Federation of Independent Business released its 16th annual Red Tape Report Card this morning as part of Red Tape Awareness Week.
Strong grades, national warning
Earning a third-straight full A, Alberta scored 9.3 out of 10 and placed above fellow frontrunners Ontario, Nova Scotia and B.C.
The federal government finished mid-pack with a C-plus for a score of 7.2 out of 10.
Although CFIB praises Alberta in the report and notes overall progress, trade tensions last year “revealed an uncomfortable truth: Canada still has a long way to go in reducing excessive regulations that stunt growth, undermine productivity and drive up costs.”
The non-profit of more than 100,000 members estimates that by 2024 the total cost of regulation for Canadian businesses had reached $51.5 billion a year. Red tape accounted for about 35 per cent of the total or $17.9 billion, according to CFIB research.
Businesses spent an estimated 768 million hours on regulatory compliance in 2024, amounting to 394,000 full-time jobs.
On average they lost 32 working days to red tape — “time that could otherwise be invested in serving customers or expanding operations,” the CFIB says in its introduction to this year’s report card.
Regulation costs have outpaced inflation and economic growth over the last decade.
“Despite governments introducing accountability measures and pledging bold plans to reduce unnecessary rules, the overall burden continues to climb — making it harder for small businesses to compete, innovate and recover from economic challenges,” the organization says.
Even in chart-topping Alberta, work needs to be done, acknowledged the minister of Service Alberta and red tape reduction in an interview earlier this week.
Alberta “definitely got rid of the low hanging fruit” after shifting into red tape cutting mode in 2019, Dale Nally said.
“But let me also assure you that there is no end in sight in terms of red tape that needs to be cut,” added Nally, the UCP member for Morinville-St. Albert.
By the government’s reckoning, its initiatives have shaved red tape by 35 per cent since 2019. Savings to the people, businesses and non-profits of Alberta last year amounted to about $100 million, bringing total savings to more than $3 billion.
Under its “automatic yes toolkit” begun last year, the need for approvals is being removed entirely for some permits. Others are being simplified to become checklists, and others still are being subjected to mandatory time limits.
Nally called automatic yes “a huge undertaking that we’re still working on.”
The CFIB painted Manitoba in “stark contrast” to Alberta. The other western province “tumbles to the bottom with a failing grade after repealing nearly all regulatory accountability measures and refusing to reinstate the Regulatory Accountability Act.”
The report card introduction said that “while some progress is evident across the country, the grades make it clear: there is still significant work to do.”
Punching above its weight
The CFIB uses a weighted system to grade the provinces and the feds on regulatory accountability, regulatory burden and political priority.
Alberta earned its highest mark for political priority with a 10 out of 10 and its lowest for regulatory accountability with an 8.9. The score for regulatory burden is 9.2
A bonus category weighted at just two per cent ranked Alberta at a middling 5.0 for wait times and service standards. Ontario and Nova Scotia notched scores of 10 out of 10.
The government contends that red tape reduction is a success story that’s having a positive effect on Alberta’s economy, saying that last year the province leveraged 12 per cent of Canada’s population to create 25 per cent of its private sector jobs.
“We continue to punch above our weight class, and it’s because of the work that we’ve done on red tape reduction,” said Nally.
This report by The Canadian Press was first published Jan. 28, 2026.