Tax breaks for shopkeepers and a bigger investment in education and training are on the cards for today's Budget, The Royal Gazette has learned.

And -- despite calls from Finance Minister Eugene Cox for belt-tightening -- the Police service could also be in for a boost.

There is also set to be good news for the Island's hotels, with further concessions to cut costs and boost business in the vital tourism sector.

The retail, restaurants and nightclub sectors have already called for cuts in the land tax and more breaks in line with ones already granted to hotels.

And the international business sector -- Bermuda's biggest earner -- is unlikely to suffer too much from the financial blueprint for the year.

Mr. Cox was -- in line with Ministerial tradition -- keeping his cards close to his chest last night.

But he said: "We need to look at the retail sector, hotels and international business and all of these areas providing us with jobs and try and lessen any burdens they may have.'' Mr. Cox added: "Without giving away too much, I do want to emphasise that I, or the Government, want to be able to develop our resources.

"We want to really try to come up with a plan which will provide employment for Bermudians.'' And a major commitment to affordable housing -- a major theme in the 1998 election campaign -- would also appear to be probable.

But Mr. Cox said Government had to raise cash as well as spend it -- and that could mean taxes on personal consumption could be set to rise.

He has already called for across-the-board cuts in spending by Government departments, which could be used to help fund social programmes.

Mr. Cox said: "We did ask the people to do that and I was very satisfied with what they have achieved.'' But prime targets for tax increases could be vehicle licensing, with hikes in the cost of an annual licensing sticker -- especially in the upper brackets of the scale. Increases in import duty on vehicles is also a possibility.

And Government may find it difficult to resist further increases in land tax -- but only for the most expensive homes. Death duties could also rise.

And sin taxes -- particularly on tobacco -- could also go up, although tax on alcohol is likely to remain unchanged to help protect tourism.

Cox: `We've been listening' Mr. Cox added Government wanted to concentrate on giving the young every opportunity possible, adding: "We want to improve education and training to guarantee and ensure Bermudians have jobs.'' Budget 2000 is being touted as the first real test of the PLP's vision for the future. Last year's Budget, coming only three months after the PLP General Election victory, was largely inherited from the former UBP Government.

Eugene Cox