Column: Scott On PLP, Economy & More

[Opinion column written by Michael Scott]

Bermudians, like many around the world, have faced unprecedented challenges in recent years. Global inflation has driven up the cost of living in nearly every corner of the globe, and economic uncertainty has affected families, workers, and businesses alike. Yet through it all, the Progressive Labour Party [PLP] has shown steady and responsible leadership, implementing policies that have made life more affordable for Bermudians while steering the country toward long-term economic stability.

The recently released Fiscal Responsibility Panel [FRP] report provides an independent assessment of Bermuda’s economic performance, and its findings underscore the strength of the PLP’s approach. While other jurisdictions are grappling with inflation rates exceeding 5% or more, Bermuda’s inflation has remained significantly lower, declining to just 2.3% in 2024. This achievement didn’t happen by chance. It is the result of deliberate, thoughtful policies enacted by the PLP to reduce costs and protect families from the worst of global economic pressures.

Under the PLP’s leadership, we have seen a suite of policies that directly address the high cost of living. The FRP acknowledged the Government’s role in keeping inflation low through measures such as:

• Freezing Government health insurance rates for the third year in a row, saving every insured person $540 annually.
• Reducing payroll taxes for 86% of workers, ensuring more take-home pay for the vast majority of Bermudians, with some workers paying 90% less than in 2017 under the OBA.
• Slashing energy taxes by 60% and freezing fuel prices to shield Bermudians from skyrocketing costs seen in other countries.
• Eliminating duties on staple goods and reducing the sugar tax.

These policies are not just numbers on a balance sheet—they represent real relief for everyday Bermudians. Whether it’s the senior on a pension, or the young professional filling their gas tank, the PLP has acted decisively to help Bermudians.

The OBA likes to criticise the PLP’s approach towards the use of the Sinking Fund. But let’s be clear: the Sinking Fund exists to serve the people of Bermuda, and that’s exactly what it’s doing. Using the fund to freeze the government standard premium rate for the 3rd straight year or support other cost-saving measures is a smart, compassionate policy designed to ease the burden on working families during tough times.

In addition to addressing immediate cost-of-living concerns, the PLP has kept Bermuda on a path of fiscal responsibility. The FRP report highlighted this progress, stating: “Bermuda now has a significant primary surplus. It has done well over the past few years to maintain a creditable path towards a balanced budget, despite a number of adverse shocks, most obviously the pandemic. Spending has generally been kept under control, and steady revenue growth has therefore largely fed through into deficit reduction.”

At the same time, the PLP has invested in the future, with policies that include:

• Expanding affordable housing, with over 70 new units completed and more than 100 on the way.
• Launching universal healthcare, using revenue from the Corporate Income Tax to expand access and reduce medical costs.
• Reforming education, with the introduction of Signature Schools to better prepare our young people for success.

As we look ahead, Bermudians face a choice: continue with the proven leadership of the PLP, or return to the failed policies of the past. The Opposition offers nothing but fearmongering, recycled talking points and schemes to open the immigration floodgates.

The PLP is not perfect, but it is clear that they are fighting every day to make Bermuda fairer and more affordable for all of us. As the FRP’s report makes clear, this Government has not only kept Bermuda on stable financial ground but has also made life better for Bermudians in the face of global challenges.

- Michael Scott, Former Member of Parliament

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