Cayman’s government rushed the introduction of controversial revenue-raising budget measures, the opposition People’s Progressive Movement has claimed.
Joey Hew, the opposition leader, said news that the ruling coalition was to reconsider some of its budget proposals, including a controversial plan to increase the cost of driving licences for non-Caymanian residents, confirmed his party had been right to be worried.
Hew said the decision “reinforces concerns raised by the opposition from the outset of the budget debate that the financial strategy being pursued is rushed, unclear and risks placing unnecessary strain on Caymanians”.
He added, “From the moment these new and increased fees were introduced, the PPM cautioned that the measures appeared to lack sufficient economic modelling and meaningful consultation – particularly with small business owners and Caymanian stakeholders.”
Hew said, “You cannot introduce sweeping fee increases, present them as necessary for the country’s finances, and then reconsider them after public concern without creating uncertainty.
“Caymanians deserve a government that plans properly, consults properly and delivers a budget that is credible from day one.”
Fee increases reconsidered
He said the change of heart underlined that his party’s decision to abstain from supporting the measures was correct.
Hew was speaking after Premier André Ebanks earlier this month confirmed that several budget fee increases were under review, including two-tier fees for driving licences.
But Ebanks insisted that the delays were caused by the need to set up systems to collect the charges.
He said the Department of Vehicle and Drivers’ Licensing were “looking at how best to operationalise that. So that’s still under analysis”.
Ebanks explained that the ability to prove Caymanian status was being looked at and hinted plans for a national ID card system could be the solution.
He added there was “possible scope for manoeuvre on the extent of the increases” as discussions continued.
Financial analysis questioned
MP Roy McTaggart, the PPM’s finance spokesperson and a former finance minister, said the postponement raised questions about the accuracy of government’s financial analysis.
“When revenue measures are introduced and then reconsidered, it calls into question the reliability of the projections underpinning the budget and creates uncertainty and instability for both the public and the business community,” McTaggart said.
“This is not about political point scoring. It is about financial credibility and responsible governance.”
McTaggart said the government needed to answer questions if revenue measures were being “scaled back”, including how any shortfall could be made up.
He asked if expenditure would be cut, projects deferred and what alternative revenue earners might be introduced instead.
McTaggart added that the government had proposed to borrow $236 million in 2026-27 without “clearly outlining how these funds will be used”, which he said was “unacceptable”.
He highlighted that the extra borrowing would take national debt to a record $634 million by the end of next year and that a signalled $85 million in borrowing could bring the total to $655 million by 2028.
McTaggart said, “The PPM warned that abrupt fee increases would impact households already facing cost-of-living pressures and create uncertainty in the business community.
“Budget stability and investor confidence depend on predictability, transparency and disciplined execution.”
Rolston Anglin’s finance ministry has been asked for comment.
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