The federal Liberal government is planning to remove GST on materials and labor costs used to build new rental housing.

This information was given by a senior government official on condition of anonymity.

The announcement could be made today by Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland at the federal Liberals' ongoing caucus retreat.

Recent polls have seen a decline in support for the federal Liberal Party, with Liberal MPs strategizing for the fall session of parliament that begins next week.

Many of the party's 158 MPs have arrived to take part in the Liberal Party's ongoing three-day retreat in London, Ontario.

Prime Minister Justin Trudeau says he wants to know from these MPs what they want.

Halifax MP Andy Fillmore says so far most of the conversation has focused on increasing capacity.

Apart from this, the issue of climate change was also discussed in yesterday's meeting.

Two more National Caucus meetings are planned for today.

The NDP, which had been demanding removal of the federal portion of GST from new rental properties, welcomed the move.