IoM To Evaluate UK Budget

by Jason Gorringe, Tax-News.com, London

28 June 2010

The Isle of Man’s Treasury Minister, Anne Craine has observed that the UK budget will have a number of ramifications for the Isle of Man.

In an initial response to the budget document, released on June 22, she said:

"Clearly the rise in VAT to 20% from January 2011 will be the main topic of conversation locally. In one sense the extra revenue this will bring in, around GBP25m per year, will be welcome, and will help us meet the budget shortfalls currently being projected over next few years. However, at the same time we need to acknowledge the impact that this will have on vulnerable groups within society, and the implications for local business. The increase in the rate of VAT will give us greater budgetary flexibility, but we still need to deliver the planned spending reductions in order to achieve the overall rebalancing of our budget in the years ahead.”

She indicated that there was a huge amount of detail to take in as a result of the budget, and said that the Treasury would be analyzing the text over the next few weeks.

Craine said that she would be evaluating the wide range of measures announced by the UK Chancellor including proposals in respect of welfare reform, corporation and capital gains tax, air passenger duty; national insurance; changes to the state pension arrangements; and a newly-announced review of public sector employees pensions.

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