The business community on Tuesday endorsed the Mottley administration’s 2026 Budget, which it described as a timely response to mounting global economic pressures and the rising cost of living facing households and businesses.
Chairman of the Barbados Private Sector Association (BPSA), James Jimmy Clarke, said in a statement on Tuesday: “The Barbados Private Sector Association expresses its broad support for the direction of the 2026 Financial Statement and Budgetary Proposals presented by the Minister of Finance, Ryan Straughn, noting its responsiveness to current economic realities and pressures faced by households and businesses.”
He pointed to geopolitical tensions and global market volatility as major drivers of the current economic environment.
“We acknowledge these pressures, driven in large part by ongoing geopolitical tensions in the Middle East with spillover effects on global energy and freight markets, required timely, targeted policy responses.”
The association welcomed measures aimed at addressing the cost of living, Clarke said, noting that several private sector recommendations were reflected in the final document.
He said the BPSA supports measures aimed at mitigating factors contributing to the rising cost of living and welcomed the opportunity to consult with the minister during preparation of the Budget.
He also welcomed initiatives to stabilise energy costs, including hedging arrangements to stabilise the price of heavy fuel oil for three months and measures to limit the pass-through effects of fuel price volatility on electricity bills and retail fuel prices, describing the approach as a prudent step to shield the domestic economy from external shocks.
Clarke further highlighted the government’s decision to revise the tariff valuation methodology for essential imports from a cost-insurance-freight basis to a free-on-board valuation, which he said should help ease imported inflation and provide relief to consumers and businesses.
But he stressed that implementation must be carefully managed to avoid unintended consequences for local producers and workers, noting that the BPSA expects further engagement with the Ministry of Finance to ensure the approach does not inadvertently displace domestic producers or workers operating within affected sectors.
The association also welcomed continued support for the tourism industry, including the extension of concessions under the Tourism Development Act and the decision to formally recognise rental car companies as tourism operators, allowing them to access incentives to modernise fleets and address capacity demands during peak visitor periods.
The BPSA strongly supports strategies aimed at expanding the micro and small business sector and strengthening agriculture, Clarke added.
At the same time, the association signalled interest in further engagement on several forward-looking initiatives outlined in the Budget.
“The BPSA is heartened by the establishment of the National Competitiveness and Productivity Commission given the declining levels of productivity within the economy,” Clarke said.
The private sector also wants additional clarity on the proposed Green Industrial Gateway Advantage, the new film incentives regime, the contemplated transfer pricing framework, and the national roadway improvement programme, noting their potential implications for productivity and logistics efficiency, he said.
Clarke reiterated the private sector’s longstanding call for incentives that encourage long-term savings and investment by Barbadians, particularly through registered retirement savings plans, noting that stronger domestic savings will be critical in addressing future fiscal pressures associated with an ageing population.
He stressed that effective implementation of the Budget measures will require sustained collaboration among the country’s social partners.
“Given the well-documented implementation challenges within the national policy environment, the association underscores the importance of structured and sustained collaboration between the social partners,” Clarke said.
The post Private sector backs 2026 Budget as timely response appeared first on Barbados Today.
