On May 2, the Government of Bermuda presented its 2025-26 Budget Statement, entitled “Fairness in Action: Building a Bermuda Where Everyone Benefits”.

We chose this theme to reinforce our commitment to ensuring that Bermuda’s economy continues to grow and that the success of that growth is shared with those who need it most.

The growth we are experiencing is thanks to the successful execution of our economic recovery plan. Despite global economic uncertainty and pressures, Bermuda’s economy continues to outperform both expectations and our regional peers. Our gross domestic product is estimated to have expanded between 4.5 per cent and 5 per cent in 2024, marking the fourth consecutive year of growth.

For the third straight year, we have a record number of persons and Bermudians working in international business. Unemployment is at a 50-year low.

Air arrivals increased by 9.6 per cent and air visitor spending increased by 22.5 per cent, exceeding pre-pandemic levels. The redevelopment of the Fairmont Southampton is well under way, and new office buildings and housing are being constructed.

And for the first time in 21 years, Bermuda has achieved a budget surplus.

The Government is grateful for the progress our island continues to make, but we know that these facts are not what matter the most to those who have not yet benefited from this success. What matters is how this growth and progress will benefit you and your family.

That is why in this year’s Budget, the Government has continued to provide relief where we know it can make a difference — the broadest package of tax reductions in history.

On July 1, this budget will eliminate duty on motor vehicle parts to reduce the cost of repairs for the transportation you rely on. It will introduce a flat rate of 10 per cent duty on all building materials to relieve pressures on homeowners and builders with renovations and maintenance. This includes essential products such as air conditioners, paint, tile, steel, rebar, drywall, doors, windows and bathroom fixtures.

Additionally, in July, this budget will reduce the tax on your energy bills by an additional 20 per cent, after reducing it by 60 per cent last year. This 80 per cent reduction will save the average family $300 a year on energy bills. It will cut mobile phone taxes by 50 per cent from $12 to $6 per month and increase the duty allowance for returning residents from $200 to $300, the first increase since 2012.

On January 1, 2026, the base rate of land tax will be cut in half from $300 to $150. In April, we will reduce private vehicle licences by a further 10 per cent after being the first government to reduce these fees in 2022.

To us, fairness in action is not just about relief; it also means investment in the services, programmes and infrastructure you rely on.

This budget invests $53 million to improve healthcare services. It will eliminate the 12-month waiting period for the Personal Home Care Benefit, expand prescription drug coverage limits to $3,000 for HIP and $5,000 for FutureCare, and introduce free annual health exams for all policyholders. These reforms will improve access, reduce costs and support early intervention, creating a fairer, more preventive and more affordable healthcare system for Bermuda.

This budget funds a $149.8 million investment, our largest since 2008, to repair and improve our infrastructure. This includes roadwork, the installation of a new asphalt plant, upgrades to Tynes Bay and the hospital, the start of the replacement of the Swing Bridge, and new facilities for schools, seniors and the Bermuda Aquarium, Museum & Zoo.

This budget also continues our record investment in affordable housing by providing $4.2 million in additional funding to deliver 30 more units this year. Another $14.9 million in funding has been allocated to ministries to support continuing social investment, including in mental health services, family counselling, homelessness and intervention initiatives.

To support the local community and sports clubs with critical upgrades, $1 million has been allocated for a fresh round of capital development grants.

To ensure more young Bermudians are equipped to benefit from new opportunities, this budget increases funding for scholarships and awards by more than $220,000 to support access to postsecondary education; increases the Department of Workforce Development’s budget by $305,000 to expand access to skills certifications, job training and overseas apprenticeships; and invests in the delivery of the island’s first National Entrepreneurship Strategy through the Bermuda Economic Development Corporation to strengthen local business creation and innovation.

This government delivered a budget that reflects Bermuda’s progress and contains initiatives and investments that will make a meaningful difference in the lives of Bermudian families.

We recognise that we are not where we want to be yet. The cost of living is still too high and families continue to feel the squeeze on their finances, but the relief provided in this budget will help every person and family in Bermuda.

After 73 hours of debate in the House of Assembly and the Senate, this budget, which demonstrates fairness in action, was approved on Thursday, June 4. Our commitment to our people is clear. There is much work to be done, but your government will continue to listen, take action and ensure that we continue to move our island in the right direction.

We thank you for your confidence in us.

• David Burt is the Premier of Bermuda, Minister of Finance, and the MP for Pembroke West Central (Constituency 18)