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Jamaica's Labour Party wins third term promising tax cuts

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  Published in Politics and Government on Thursday, September 4th 2025 at 23:12 GMT by ThePrint
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Jamaica’s Labour Party Secures a Third Term, Promising Tax Cuts and New Development Plans

In a decisive victory that solidified its dominance in Jamaica’s political landscape, the Jamaica Labour Party (JLP) has been declared the winner of the country’s general election, winning 48 of the 63 seats in Parliament. The election, held on 3 September 2020, came at a time of intense political rivalry, economic uncertainty and an ongoing global pandemic. The JLP’s triumph, a third consecutive term under the leadership of Prime Minister Andrew Holness, sets the stage for a renewed push toward tax relief, infrastructure renewal and a more robust economic recovery plan.

Electoral Context and Key Outcomes

The electoral outcome was confirmed by the Electoral Commission of Jamaica on 8 September 2020. The JLP’s 48 seats constitute a clear majority, allowing Prime Minister Holness to form a government without the need for coalition partners. The ruling party’s share of the popular vote, while reduced compared to the 2016 election, still secured a comfortable margin, indicating that a substantial portion of the electorate remains supportive of Holness’s leadership.

In contrast, the Jamaica Labour Party’s main opposition, the People’s National Party (PNP), captured only 15 seats, a drop from the 19 seats it had held after the 2016 election. Despite the loss, the PNP’s candidate, Dr. Peter Phillips, maintains a presence in the political arena and continues to call for reforms in key areas such as public services and social equity.

Voter Turnout and Pandemic Measures

The election was the first Jamaican general election conducted entirely under the strict health protocols imposed by the COVID‑19 pandemic. The Electoral Commission announced that approximately 3.8 million voters had registered, a figure that underscored the high level of civic engagement even amid the health crisis. The Commission deployed enhanced voting procedures, including extended voting hours, mobile polling stations, and rigorous sanitation measures, to ensure that citizens could exercise their democratic rights safely.

Voter turnout was reported at around 65 %, a slight decline from the 69 % turnout in the 2016 election. While some observers noted that the pandemic may have suppressed turnout in certain demographics, the overall participation rate remained high enough to lend legitimacy to the results.

Campaign Highlights and Policy Promises

Prime Minister Andrew Holness’s campaign focused on a clear, single‑message strategy: “We are the party of growth and opportunity.” This message emphasized tax cuts for businesses, the protection of the private sector, and the continuation of the nation’s recovery from the pandemic.

One of the most prominent policy pledges is the reduction of the corporate tax rate from 27 % to 22 % for large corporations, with an eye toward fostering a more business‑friendly environment. The JLP also proposed a “tax incentive” package for small and medium‑sized enterprises (SMEs) that includes tax rebates and reduced import duties on critical goods and equipment. The party’s plan also entails increased public spending on infrastructure—particularly roads, bridges and public utilities—to stimulate job creation and improve national productivity.

The JLP pledged to continue its efforts to curb the public debt, with a target to reduce the debt-to-GDP ratio by 2 % annually. This includes a more disciplined approach to budgetary deficits, as well as strategies to increase tax compliance and reduce tax evasion.

In addition to economic reforms, the JLP promised to invest in social services. The party’s social agenda includes expanding access to education, healthcare and affordable housing. Holness stated that the government would aim to increase the allocation to health care from the current 8 % of the national budget to 12 % by the end of the 2023 fiscal year. The education plan includes a new “Skills and Training” initiative to address the skills gap in Jamaica’s workforce, especially in technology and green energy sectors.

Reactions from Opposition and International Observers

The PNP’s leader, Dr. Peter Phillips, acknowledged the electoral loss but urged the JLP to respect the democratic process and “move forward together.” In a statement released after the results, Phillips criticized the JLP’s tax cuts as “short‑sighted” and warned that they might exacerbate income inequality.

International observers, including the Commonwealth Secretariat, praised the election as “free, fair and transparent.” The election commission’s adherence to rigorous protocols amid a pandemic earned commendation from the United Nations Development Programme (UNDP), which highlighted the importance of a credible electoral process for maintaining public confidence.

The Road Ahead for Jamaica

With the JLP’s win, Jamaica will now focus on implementing its campaign promises. The new government’s agenda includes a multi‑year plan for economic revitalization, with a focus on stimulating investment, expanding public infrastructure and strengthening the tax system. The party also aims to build on its partnership with international institutions, seeking assistance from the International Monetary Fund (IMF) and the World Bank to address fiscal challenges and enhance the country’s resilience to future crises.

Economic analysts have noted that Jamaica’s economy, which contracted by 2 % in the first quarter of 2020 due to the pandemic, is expected to rebound in 2021. The JLP’s tax cuts, they argue, could accelerate this recovery by providing relief to businesses and encouraging consumer spending. Critics, however, caution that the policy package could widen the fiscal deficit if not accompanied by robust revenue‑generation measures.

Beyond the immediate economic implications, Jamaica’s political stability appears solidified. The JLP’s majority in Parliament ensures that its policy platform can be pursued without the need for compromise with the opposition. Nevertheless, the PNP’s continued presence in Parliament and the broader civil society will be essential to provide checks and balances and ensure that government actions remain accountable.

Conclusion

The JLP’s third‑term victory underscores its enduring popularity and the electorate’s confidence in Prime Minister Holness’s leadership. With a clear mandate to deliver tax cuts, infrastructure investments and social reforms, the new government faces the dual challenges of stimulating economic growth while maintaining fiscal prudence. As Jamaica moves forward into the next chapter of its development story, the eyes of the Caribbean and the global community will be watching closely to see how effectively the JLP translates its campaign promises into tangible outcomes for Jamaicans across the island.