More needs to be done in the future to reduce the cost of doing business in Bermuda, according to the organisation representing the island’s international property and casualty reinsurers.

John Huff, the chief executive of the Association of Bermuda Insurers and Reinsurers, made the comment as part of a generally positive response to David Burt’s Budget, which was released on Friday.

Mr Huff welcomed government efforts to pay down the country’s $3.2 billion debt, pointing to the repayment in full of the $605 million senior notes maturing in January 2027 as a positive move.

He added: “The Government's first step in reducing employer payroll taxes is also positive — and there's more to be done.

“The retention and creation of Bermudian jobs, the backbone of the economy, will require a sustained commitment to reduce the cost of doing business on island including healthcare costs.

“Global competition remains fierce. Abir is pleased to continue to partner with the Government to make Bermuda the jurisdiction of choice.”

Mr Huff’s comments on payroll tax came after Mr Burt, the Premier and finance minister, reduced employer payroll tax for exempted undertakings from 10.25 per cent to 9.75 per cent and reduced employer payroll taxes by half a percentage point. In the case of companies with payrolls of more than $1 million, it also fell from 10.25 per cent to 9.75 per cent. These are the top rates paid by employers.

However, the Bermuda Tax Reform Commission 2025 Report, published last August, had explicitly recommended “capping the top rate of employer payroll tax at 7 per cent [with a suggested further reduction to 5 per cent] to lower the cost of employment and encourage job creation”.

Abir members represent the highest single group of payers into Corporate Income Tax, which levies a tax of 15 per cent on the profits of multinational companies with annual revenues of more than €750 million.

In the Budget Statement, the Premier announced that employer payroll tax rates for international businesses would decrease from 10.25 per cent to 9.75 per cent. International re/insurers were widely expected to receive a more substantial “break” than the 0.5 per cent reduction announced.

The Bermuda Hotel Association, which represents a large proportion of the country’s second largest foreign exchange earner after international business, welcomed both the general direction of the Budget and the measures aimed at tourism specifically.

Its initial review of the Budget left the association generally pleased that “Government is addressing key areas in the upcoming fiscal Budget year, including paying down the national debt”.

Stephen Todd, the association’s chief executive, said: “Our industry is looking forward to supporting the Bermuda Government as a key industry sector, as well as working directly with the respective ministers and ministries in ensuring that our destination is positioned to grow our overall economy and continue to provide career opportunities to Bermudians who seek to join the tourism industry.”

He also highlighted specific areas in which hoteliers largely agreed with the Budget including the elimination of the last part of the duty that the Government levies on the cost of electricity fuel, which should in turn reduce the overall cost to the end consumer, as well as a further 10 per cent reduction on vehicle relicensing costs.

Hoteliers welcomed the exemption on local dividends being increased from $10,000 to $20,000 and the Ministry of Tourism and Transport, Culture and Sport receiving additional funding to purchase an initial 20 electric buses to effect much needed improvements and reliability of public transportation. Funding is also being provided as a deposit for a further order of 20 electric buses.

The Bermuda Tourism Authority will also receive a $4 million uplift, which is aimed at promoting the island outside the summer months and “to support the expansion of sales and marketing initiatives to effectively promote the 617 new hotel rooms expected to come online later this year”.

The increased budget allocation to the Ministry of Economy and Labour to facilitate high-quality programmes in the Department of Workforce Development was also welcomed. This is to be supported by all relevant industry sectors as a means of enthusing Bermudians to choose careers in the overall hospitality industry.

Additionally, hoteliers welcomed funding increases to address key infrastructure requirements including roads, public transportation and related areas that are in urgent need of addressing.