Finance Minister Paula Cox will today present Bermuda's toughest Budget in many years — but critics hope her answer is not to raise taxes.

Leading businessman Peter Everson said hospitality, retail and construction industries all need help simply to maintain existing employment levels, while low-income workers are also hoping for breaks from Ms Cox today.

Mr. Everson, chairman of the Chamber of Commerce's Economic Committee, also joined both Opposition parties in calling for more careful handling of taxpayers' cash amid concerns at Bermuda's escalating debts.

Speaking ahead of the Budget — Ms Cox's seventh and last before she is expected to challenge as Premier later this year — Mr. Everson told The Royal Gazette: "This Budget is the most significant in recent history because of the depth and variety of challenges facing the Bermuda economy and the limited number of funding options available to the Government.

"Businesses are not able to increase their tax payments because far too many are running at a loss or breaking even at best. Therefore there should not be any new taxes nor should there be increases in tax rates this year.

"Hospitality, retail and construction all require assistance to maintain current employment levels during 2010 and to increase employment levels in 2010 and beyond."

Bermuda Democratic Alliance MP Shawn Crockwell also called for tax breaks, despite signs of economic recovery in the US.

"Government should not raise the rate of payroll taxes, customs duty or fees on essential items, for example clothing, fuel, land tax, car licensing fees," he said in a statement.

"Government should, at least, continue the relief given to retailers to delay payment of customs duty on imported goods for three months, or preferably, at the point of sale."

And Mr. Crockwell called for concession extensions for major capital imports, hotels and restaurants, with concessions extended to include all businesses in struggling St. George's.

Earlier this month, Shadow Finance Minister Bob Richards warned public debt — rising to $850 million including the Butterfield bank guarantee of $200 million — was pushing Government perilously close to the $1 billion ceiling approved last year.

Mr. Richards said, in contrast, between 1998 and 2004 the debt figure had remained steady at just below $200 million.

Meanwhile last April, credit rating agency Moody's lowered Government's bond rating from Aaa to Aaa2 — effectively meaning Government had to pay a higher rate of interest when it borrows money.

Yesterday, Mr. Crockwell stated: "We would like to hear clear signals from Government on how it intends to manage Bermuda's growing debt. This is a cause of grave concern and is a massive burden on the people's pocketbooks."

And United Bermuda Party leader Kim Swan stated: "If Government really cares about the health of this Country, it will acknowledge that it has presided over a stunning deterioration in our financial well-being and put in place policies and practices tied to principles of prudence, discipline and responsibility."

In recent weeks, Government has also been criticised for its travel bills — with Premier Ewart Brown running up $265,000 in nine months on overseas trips — while Auditor General Larry Dennis pointed to a lack of control over Government bank accounts.

Mr. Swan said: "This Government has backed Bermuda into a corner it did not need to be. It has made us weaker economically and damaged our reputation as a place to do business. All this can be rectified with sound decisions and real commitment to values that steer its actions toward the public good and away from self-enrichment."

Mr. Crockwell said: "The Minister's Budget Statement should address what procedures Government has implemented to ensure current and future projects are managed within budget. Clearly, this has been a problem and Government should inform the public the steps it has taken to rectify the issues — if any."

And Mr. Everson said: "Government has been running a current account deficit for more than two years and this will continue in 2010/11.

"This means that current expenditure is being funded by borrowings that will be repaid by future taxpayers: our children and future generations.

Mr. Everson said in the United States 42 state governments have lowered their wage bills by either layoffs, requiring employees to take unpaid leave, freezing new hires or similar actions.

And in Ireland, the Prime Minister took a 20 percent pay cut and all ministers a 15 percent pay cut to set an example.

Meanwhile Mr. Crockwell asked whether Government had achieved the ten percent savings it pledged last year in Works and Engineering, Labour, Home Affairs and Housing, and the Ministry of Finance.