Relief for hoteliers in the new Budget delivered on Friday got high marks from the Bermuda Hotel Association.

David Burt, the Premier, vowed to extend payroll tax relief for “at least another six months” for hotels, restaurants, bars and nightclubs to recover.

Stephen Todd, the BHA chief executive, welcomed the Government’s recognition of the need for continued relief “as we seek to successfully reopen the hospitality sector”.

Claudette Fleming, executive direct of Age Concern, told The Royal Gazette: “Well done to Premier Burt for delivering a kinder and gentler Budget than perhaps anticipated.

“The intent not to increase the tax burden on everyday citizens is laudable, particularly a desire to positively impact the cost of electricity and the reduction in vehicle licensing.”

She added: “Still, we repeat, there remains an expectation that the current government will deliver on its former promises to address the cost of living, food, and housing in particular; and to implement national health and ageing plans.”

Dr Fleming highlighted the lack of increases in social insurance payouts.

She said there were no mentions of premium adjustments to the Health Insurance Plan and FutureCare insurance packages.

She added: “We understand the dilemma of the sustainability of the Contributory Pension Fund and are merely pointing this out to older adults who may have expectations of this Budget for relief in these two areas.”

Dr Fleming said the group hoped that within the substantial budgets for the ministries of health and social development and seniors were “adequate resources to complete and commence implementation of both the Health and Ageing plans”.

“These plans have been kicked down the road for far too long, as a recent Age Concern survey indicates caring for ageing loved ones is a serious concern.”

Seniors’ homes would welcome the Budget’s exemption from land tax, she said.

“Hopefully, homes are in a financial position to pass cost savings to their residents.”

But Dr Fleming said bolder fiscal policy steps had been “explored by the Government but not gainfully realised”.

She said targeted price controls towards tackling the cost of living could “mitigate whatever gains made in tax stabilisation that will likely be lost with rising inflation”.

“As public stewards, the Government is tasked to ensure that its citizenry has access to the mechanisms needed to avoid or recover from a fall.

“The pandemic has propelled a tremendous financial fall for many.”

Craig Simmons, an economics lecturer at Bermuda College, said the Premier’s announcement of a one-year delay in balancing the budget to 2024-25 “came as no surprise”.

Mr Simmons said the delay had been hinted, since “no tax increases plus a marginal increase in spending suggests a deficit”.

“Given the Government’s past record, another deferment is not out of the question.

“Of course, all of this is predicated upon significant growth in tax revenue, which in turn is hitched to a major recovery in the hospitality sector.”

Mr Simmons noted that debt service was a strain on public finances.

“If it were a ministry, it would be the third-largest,” he said.

He called it “imperative” that the Government “support blue-collar workers and, by implication, their employers”.

“It’s a part of the social contract.”

Mr Simmons praised the work of the third sector in meeting the needs of blue-collar Bermudians.

The Budget promised a land tax break for charities reliant on donations to do their work.

“In many ways, they are better suited to addressing the issue of hunger and sheltering than the Government.

“Any relief for them is well deserved.”