Affordability and sovereignty were expected to dominate debate as Parliament reconvened on Jan. 26, 2026, after the holiday break, with opposition parties vowing to press Prime Minister Mark Carney to back up his Davos call for a new world order with concrete action on jobs and the cost of living.
Carney returns from the world stage
The struggle of Canadian families to make ends meet in a turbulent economy was set to be the key theme of the new sitting. Carney returned to the front bench of the House of Commons after travelling the globe to spur exports and drum up investment from new sources amid deep uncertainty about Canada’s trading relationship with the United States.
In a high-profile speech in Davos, Switzerland, the prime minister urged other middle powers to join Canada in building a new order that embraces respect for human rights, sustainable development, state sovereignty and territorial integrity. The speech drew international attention — and set up the opposition’s central attack line: that bold words abroad must be matched by results at home.
The Liberals could anticipate pressure from opposition MPs demanding to know what the government will do to help Canadians who are losing their jobs and battling to put food on the table.
Opposition sets its terms
Interim NDP Leader Don Davies said New Democrats will focus on the economy and Canadian sovereignty and security — including policies that can be put in place now to help with jobs, housing, health care and affordability.
Opposition House leader Andrew Scheer said the Conservatives will push for measures including a capital gains tax credit to encourage people to invest in Canadian businesses and the removal of “hidden taxes” that make food more expensive.
The Conservatives had already signalled a conditional willingness to co-operate: in an open letter on Saturday, Leader Pierre Poilievre offered to fast-track trade, grocery, bail and major-project measures, and Government House leader Steven MacKinnon publicly welcomed the “spirit of co-operation,” saying he would discuss details with Scheer.
Affordability moves on day one
The government moved quickly to blunt the affordability attack. On the first day of the sitting, Carney announced a boost to the GST credit, along with $20 million for the Local Food Infrastructure Fund to support organizations such as food banks, and work on a National Food Security Strategy. “This strategy will include measures to implement unit price labelling so you can easily shop and compare in this era of ‘shrinkflation’ as well as support for the work of the Competition Bureau in monitoring and enforcing competition in the market including across supply chains,” Carney said.
The push came as Statistics Canada figures showed food prices rose five per cent in December from a year earlier, with coffee up 30.8 per cent and beef up 16.8 per cent. MacKinnon urged Poilievre to “get out of the way” and help pass the new measures, while Carney, pressed repeatedly by reporters, said he is “focused on results for Canadians” and is not considering a spring election.
