Manx Budget 'Will Not Undermine Economic Potential'

by Jason Gorringe, Tax-News.com, London

01 February 2012

Discussing the state of the Isle of Man economy, Chief Minister Allan Bell said that the local business community would need to work with the government as it attempts to consolidate the nation's financial position in its upcoming budget in order to exit strongly from the global recession.

Discussing 'a sustainable future for the island' at the 'Manx State of the Nation' conference on January 27, 2012, Bell said that the forthcoming budget would focus on stimulating further economic growth, and building on the resilience and diversity of the Manx economy, but, as previously warned, would include significant measures to address fiscal slippage.

Discussing the challenges ahead for the government, Bell said: “As the storm clouds continue to gather around us in Europe and beyond, it is vital that we develop new strategies to protect our future and do not dwell on past success. If we lose focus on the needs of the economy in the time ahead, either through complacency or through the distraction of our fiscal challenges, then we risk endangering our impressive achievements of the last 25 years.”

The audience heard that the Island had solid foundations to build upon, with no external borrowing, an unemployment rate below 2.5%, strong reserves, and continued economic growth despite ongoing turbulence in international markets. The Chief Minister said the robust performance of the Isle of Man economy was in no small measure down to the confidence and enterprise of its private sector.

The conference heard that next month’s Budget would highlight the very challenging targets that had to be met in order to protect the Island’s core services and maintain a vibrant economy, but Bell underscored the government would not undermine the competitiveness of its important industries.

The Chief Minister concluded by saying: “There is one vital message that must never be forgotten. Without a strong and sustainable economy, delivering a strong and sustainable fiscal base, the political independence of the Isle of Man will always be vulnerable to external pressure. As a Manxman I am proud of what this island and its people have achieved over the last 25 years. We have fought long and hard to rebuild our economy and our public finances, and to defend and grow our political independence. I can promise you today that as long as I remain Chief Minister I will do everything in my power to protect those achievements and your futures.”

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