In its Reply to the Budget, the Opposition says the PLP Government’s failure to make meaningful progress has squeezed Bermudians’ wallets and disturbed their peace of mind
Temporary Band-Aids for short-term political wins.
This is how the Opposition today framed Government’s financial plans, in its formal Reply to the Budget. (SCROLL down for full reply, HIGHLIGHTS above)
The One Bermuda Alliance has warned that Bermuda’s improving revenue outlook masks deeper economic weaknesses.
Shadow Finance Minister Dr. Douglas De Couto said the introduction of Corporate Income Tax (CIT) has significantly boosted government projections, with $753 million expected in the next fiscal year — roughly one-third of total revenue.
However, he cautioned that the island has become heavily dependent on a small group of international insurance companies, leaving public finances vulnerable to global market shifts.
Without the windfall provided by the Corporate Income Tax, the PLP Government’s performance would have driven Bermuda into a “massive fiscal crisis, once again,” the OBA argues.
Dr. De Couto claims that under the PLP Government, the economy shrank and then flatlined: “It gives me no pleasure to say that since the last Budget, very little progress has been made.
“After years of financial strain under the PLP Government, years marked by rising debt, mounting pressures on families, and declining trust, the introduction of the Corporate Income Tax allows Bermuda to course-correct, to stabilize Bermuda’s financial foundations, and support Bermudians in need.
“The CIT presents the chance to stimulate real growth in our economy, and to finally create new opportunities for Bermudians to enjoy the quality of life they desire and deserve.”
Opportunity, however, does not equal execution, the OBA argues.
The success of the PLP Government’s Budget must be measured by results delivered for our people, not just abstract numbers: “For many Bermudians, their struggles have not eased, despite the years of headlines and promises. Payroll tax reductions, electricity relief, and other measures provide temporary relief but do not create a sustainable economy.
“… Most Bermudians have heard very little of what the Premier has referred to as ‘quiet but meaningful progress’. Whatever progress that may be, it is too little, too late. Bermudians need real change, and real progress.”
Dr. De Couto said an OBA government would target support where it is most needed, protect our revenue base, create growth and opportunities, and build long-term stability – “instead of chasing short-term political applause”.
Fleshing out his criticism of the PLP’s handling of the economy, Dr. De Couto said GDP remained flat until Covid in 2019, and has barely recovered since.
“Local GDP has grown only 4.1% since 2017, an average of 0.6% per year. Payroll tax reductions, electricity relief, and other measures provide temporary relief but do not create a sustainable economy.
“In contrast, International Business has grown 30% over the same period, or 3.8% per year – over six and a half times as much.”
On the issue of jobs, the Opposition points to a decline in Bermudian employment and continued population shrinkage, warning that fewer workers mean higher per-person costs for healthcare and pensions.
The Shadow Finance Minister cited the latest Employment Briefs data, which showed that through the end of 2024:
- There are 208 fewer jobs than in 2017;
- There are 1,436 fewer jobs for Bermudians and their spouses than in 2017, a decline of 5.6%;
- And, while jobs in International Business have grown by 1,040 since 2017, there has been a loss of 1,248 non-IB jobs.
“What does that mean for Bermudians who aren’t on the IB train? Fewer opportunities, fewer pathways, and a diminishing role in their own economy … The One Bermuda Alliance applauds and welcomes IB’s success, but Bermuda cannot be sustained by one sector alone.”
Given Bermuda’s “over-reliance” on International Business, Dr. De Couto argues, we must diversify where we can, including regrowing tourism.
He cited data that “raises serious concerns”.
In 2025:
- Total vacation and business visitors remain 17% below 2019 levels and 11% below 2024;
- Total air arrivals remain 30% below 2019 and 3.4% below 2024;
- Airline load factors, or the number of seats filled is only at 68% of 535,400 total seats, versus 75% of 580,000 seats in 2019.
Bermuda “used to have more planes with more passengers,” Dr. De Couto said, adding: “Under this PLP Government, tourism has flatlined with far lower numbers than before Covid.
“We are hopeful that the Fairmont Southampton will eventually re-open, and look forward to the new Loren at Elbow Beach. But these projects are largely driven by investors already in Bermuda, some of whom came here under the OBA.
“What is the PLP doing to bring new investors to our shores? In over eight years, this PLP Government has failed to bring any new hotel investors to our shores.
This is not diversification. This is stagnation.”
While acknowledging lower inflation in recent months, Dr. De Couto said cumulative price increases since 2018 have outpaced wage growth for many workers, eroding purchasing power. Bermuda also remains ranked among the world’s most expensive places to live.
Harking back to the economy’s reliance on International Business. Dr. De Couto said: “The Government must no longer sit by as spectators to the IB economy, content to skim the cream off the top, while the rest of the economy stagnates.”
The OBA is proposing strict fiscal guardrails for managing CIT revenue, including legislating a stability fund, capping spending growth, and prioritizing debt reduction.
Budgets are about more than numbers, Dr. De Couto says. “They are about whether families can build a life here, whether seniors can age with dignity. Whether young Bermudians see real opportunity, or more empty promises.
“It’s time for transparency. It’s time for responsibility, and it’s time for this PLP Government to be accountable to all Bermudians.”P Government to be accountable to all Bermudians.”
