Thursday, February 18, 2010
The Isle of Man’s Treasury Minister, Allan Bell, presented his ninth budget in the island’s parliament, the Tynwald, on February 16. The budget features lower public spending, increased individual taxation and the use of reserves to offset the fall in tax revenues as a result of the change to the VAT sharing arrangement with the UK.
Bell explained that the budget was the first installment of a five-year strategy to rebalance government finances following the UK government’s announcement that it would be reducing the amount of VAT apportioned to the island under the two countries’ VAT sharing agreement.
The salient features of the 2010/2011 budget include:
Bell also announced an 18% increase in Personal Allowance Credit for the least well off, a 1% increase in income tax personal allowance, GBP96m capital spending, a freeze on salary budgets and the loss of nearly 100 staff posts by non-replacement.
“This is a Budget that paves the way for change while maintaining support for the least well-off in our society. There are further and greater challenges ahead, but we now have a clear plan to manage the transition to a new era of government fit for the future,” Bell explained.
“The Isle of Man is not alone in facing fiscal difficulties, but we are in a relatively strong position. Our economy is still healthy and we are a resilient and resourceful small nation with a track record of working together to make the most of changing circumstances.”
Other noteworthy measures in the Budget include: