IOM Treasury Minister Tables 'Balanced' Budget

by Robert Lee, Tax-News.com, London

19 February 2009

The Isle of Man government has announced that a ‘balanced’ budget package, containing various fiscal changes, was tabled in parliament (Tynwald) by Treasury Minister Allan Bell on February 17.

Bell’s eighth Manx Budget includes a GBP127m capital investment programme, to help maintain activity and jobs in construction, and a further boost for international marketing.

At the same time he announced further assistance for those on low incomes, including the unemployed, and a prioritisation of spending on health and social care.

Bell admitted that the budget was the most difficult yet, but reminded the Tynwald that the island’s economy is also stronger and more diverse then in any previous slowdown. The Isle of Man economy retains positive growth, and feedback from companies is also seldom negative, he stated.

Key features of the 2009 Isle of Man Budget include:

  • GBP127m capital spending programme plus GBP22m for the local authorities housing programme;
  • GBP5m more for the Marketing Initiatives Fund to promote the island internationally;
  • Overall government net spending to rise by 1%;
  • Net spending on health and social care (DHSS) to increase by 5.7% or GBP13.3m;
  • Jobseekers Allowance to be made tax-free;
  • Personal Allowance Credit for people on low incomes to increase 10% from GBP500 to GBP550 per person or GBP1,100 per couple;
  • Basic pension and pension supplement to increase by 5%;
  • No change in income tax rates, allowances, reliefs and thresholds;
  • A GBP2.4 m overseas aid budget; and,
  • GBP15m transfer to Public Sector Employees Pension Reserve.

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