Cox's Budget: 'We must do more with less'

In her first budget as leader of the country the Premier cut $90million in spending programmes and introduced a series of measures to help create jobs, including a reduction in payroll tax and plans for a new “one-stop career centre”.

Ms Cox also announced $60m in cuts from the capital budget — money already earmarked for development — making good on her promise of $150m cuts.

Some of the biggest cutbacks come in the Department of Education (-$15m), Tourism (-$7.9), Youth, Family, Sports and Community Development (-$5.3) and Transport (-$6m).

The police service budget is cut by $7.5 million — a substantial reduction but not the $16 million they were initially told to expect.

Even the much-touted Mirrors programme and Financial Assistance — which has a remit to provide support to people in hard times – had funding cut.

Ms Cox said her approach to unemployment would be “workfare not welfare” with Financial Assistance linking up with the National Training Board and the Department of Labour to get people back to work. The free day care allowance was also scaled back: Only families earning less than $50,000 collectively are now eligible, down from $70,000.

The costly Bermuda Music Festival has been axed because it did not bring in enough tourists and $500,000 will be allocated in its place for a series of smaller events.

There will be a decrease in fees for agency advertising through use of a Media Buyer vehicle, representing a $1.6 million in savings in fees and commissions.

There was bad news for BlackBerry junkies with a ‘luxury tax’ on cellphones expected to yield a total of $2.6m for Government over the coming year.

Ms Cox committed to “zero” job cuts in the public sector but said vacant positions will not be filled and that Government would save $7 million in overtime costs.

For the Bermuda Cricket Board and Bermuda Football Association the glory days of big Government support are over — their funding has been slashed to $250,000 and $750,000 respectively.

Despite the cuts, Government still expects to borrow $136.5million — partially to help service its existing debt.

Ms Cox said her Government would spend $900m in the coming year — $1.08billion after debt servicing was taken into account. It expects to get $940m in revenue.

She said her budget demonstrated “fiscal restraint” and encouraged “job production” and should be seen as part of a long-term financial plan to get the economy back on track.

She said: “We must prepare for the future and we must put the people, policies and programmes in place today that will ensure economic stability and growth to Bermuda tomorrow."