Employers and unions gave their support to yesterday’s Budget, welcoming slashes to employment costs through a two percent reduction in payroll tax, from 16 percent to 14 percent.In a first-time move, Premier and Finance Minister Paula Cox met with Bermuda Industrial Union chiefs and around 100 rank-and-file members hours after delivering the statement.Pre-budget commentators had warned an aggressive financial plan that severely cut Government or public spending could create a risk of social unrest.But BIU president Chris Furbert gave his backing to her package, which pledged no public job cuts, and payroll tax relief to help boost employment.He said of the meeting: “The atmosphere was extremely warm. She had some Cabinet Ministers there and they entertained questions.“It’s important that we be treated as a social partner. We know that the payroll tax has been rolled back. I know a lot of employers and workers were concerned about that and I’m glad to see that.“I think it was a good idea to raise it last year. It was done for the right reasons; they needed to stabilise the economy. Now they have rolled it back for good reason. They have listened to everybody and rolled it back.”Ms Cox also announced that payroll tax relief for the hotel sector will be extended through the end of March next year.Customs duty relief on capital goods for some sectors will be extended beyond the end of March this year.“The economic impact of the payroll tax roll-back will touch all sectors of the economy including hospitality, construction, retail, international business and local manufacturing,” said Ms Cox.“The hope is that jobs will be retained and where businesses are stronger, more jobs will be created.”She also stated: “Our unemployment rate has risen to about five percent and with the global economy likely to remain weak for some time, it is crucial that policy adjustments are made to mitigate weak job growth.”Questioned on that figure, Ms Cox said she was unable to be more specific due to a lack of statistics and described it as a “rolling figure”.Responding to the budget, Martin Law, chief executive officer of the Bermuda Employers’ Council, said: “All-in-all we see this as an encouraging budget. The Premier has clearly grasped the problems facing Bermuda and produced a budget that strikes a reasonable balance and has a long view. Having a long view is a good thing.“The two percent payroll tax roll-back is very welcome. There is some realism to this budget and we are encouraged by it.”He described it as a “real attempt to give some stimulation to employers”.However, he said there must be “more and better” dialogue between Government and stakeholders.Mr Law has previously spoken of the need for Government to gather and make public accurate, up-to-date workforce statistics if it wants to tackle the growing unemployment problem. Asked about the Premier’s inability to give a concrete figure yesterday, he said: “That’s something Government needs to work on.”Armell Thomas, president of the Bermuda Public Services Union, said: “I have been on pins and needles because I didn’t know what to expect.“I’m quite happy with it. I thought it was a good budget. It’s going to stimulate the economy.”He said reduced payroll taxes will help create jobs and praised the tax relief for restaurants and hotels.“Those things are going to help create jobs.”He welcomed the news there will be no public sector job cuts. And he said of the estimated unemployment rate: “Five percent sounds about right. It’s probably a bit more.”Michael Fahy of the Bermuda Democratic Alliance also welcomed the payroll tax relief.“The BDA, and numerous non-Governmental organisations and political commentators have been saying ‘roll back payroll tax’.“We support it, it’s a good initiative to support spending and to encourage people to employ and keep Bermudians.”Further details on moves to help employers were given by Minister of Economy, Trade and Industry Kim Wilson.Hers is a new Ministry, created by Ms Cox when she became Premier at the end of last year. Its aim is to strengthen the economy and match people to jobs.The Ministry has been allocated a $23.6 budget for the year. A total of $2.4 million of that will go on Ministry headquarters.However, departments that used to fall under other ministries have suffered funding cuts. The Post Office gets one percent less than last year, with a $14.9 million budget.The Department of Labour and Training gets a 28 percent cut, with its budget shrinking from $8.6 million to $6.2 million.The Bermuda Small Business Development Corporation suffered an 80 percent funding cut, but will still launch two new economic empowerment zones in the East End, located in post office sub stations.The Post Office will focus on revenue generating initiatives according to Sen Wilson, as mail volumes have reduced by around one million pieces per year.She said this would include “a new US shipping address product” that “is designed for persons who shop online and need to get their merchandise back to Bermuda”.This sparked concern from Mr Fahy who said: “It seems to me there’s a delving of the Government into private sector areas. Does this encourage local retail? Does it encourage people to shop locally?“It does seem to be at odds with stated policy to ‘Buy Bermuda’. It’s not going to impress local retailers who are struggling as it is.”Senator Jeanne Atherden, Shadow Minister of Economy, Trade and Industry, gave some initial comments to this newspaper.She then asked to retract them, saying all Budget reaction would come from Shadow Finance Minister Bob Richards.He said in a statement: “We support moves to cut employment costs for businesses. But these measures in themselves are not enough. The Government could have done much more.”