The 2005/06 Budget, like last year's Budget, looks good at first ? but once you dig beneath the surface most of it is either recycled or comes from somewhere else, Opposition Leader Grant Gibbons said yesterday.

The United Bermuda Party will deliver a formal Reply to the Budget Statement in the House of Assembly next Friday.

However last night Dr. Gibbons offered his party's initial reaction to the Progressive Labour Party Government's seventh annual Budget: there's not a lot there.

The Budget lacked initiatives addressing first-time homeowners and affordable housing, the high cost of living, seniors, and violent crime, he said ? all issues which could have been tackled with proper planning and a better approach over the past seven years.

In the meantime, Government continues to significantly underestimate revenues from payroll tax, leading Dr. Gibbons to believe that ? despite no major tax increases and a newly-tiered payroll tax structure ? the tax burden is far higher than it needs to be. "You are taking much more tax out of the pockets of individuals and organisations than you need to."

Last year, for example, Government originally estimated that payroll tax would yield a revenue of $220 million in 2004/05. As that fiscal year draws to a close, however, that estimate has been revised to $248 million ? leaving Government with an unexpected $28 million windfall. Total revenue for the year is estimated at $738 million, $44 million higher than expected.

"The tax base is now $200 million higher than in 1998, and payroll tax has increased by more than $100 million since 1998," Dr. Gibbons, also the Shadow Finance Minister, said. "That leads to serious questions as to what they have accomplished in light of the increasingly high tax burden."

To some degree the increases can be put down to inflation, he agreed, while accounting firm Deloitte & Touche noted that revenue from payroll tax has also been increasing naturally due to economic expansion.

Nevertheless, noting that payroll tax was increased last year and that it has been consistently under-budgeted by Government, Dr. Gibbons remained concerned.

"They really didn't need the increase from last year," he said. "But they took it anyway, they've been doing that consistently and there's nothing to show for it."

He also expressed concern about the $137 million Government proposed to spend on capital expenditure.

Government has been unable to spend its budget on capital expenditure over the last few years as it has not been able to move ahead with capital projects such as the new senior secondary school at the expected rate, he said.

The figure projected for this year is "a huge amount of capital spending" that he once again doubted Government would be able to spend ? meanwhile inflation could take effect, driving construction costs up.

In seven years Government has spent some $3 billion, "and quite frankly there is very little to show for it".

Despite apparent focus placed on seniors in the 2005/06 Budget; funds set aside for 160 homes as well as further monies for emergency housing; and increased funding to the Bermuda Police Service for more officers in the Police Support Unit, Dr. Gibbons maintained that the Island has seen very little return on that $3 billion.

With roughly another $800 million in total due to be spent in the coming year, he repeated concerns that without action behind the ideas, the Budget meant nothing.

"Nothing is being done to help those suffering in the economy," he said. "Those trapped in low-end or middle-end jobs really aren't benefiting.

"Nothing is really being done to ease the lives of those who are really being squeezed by the high cost of living."