New GDP Figures Reveal Isle Of Man Is Wealthier Than The UK

by Amanda Banks, Tax-News.com, London

08 October 2001

According to the Isle of Man government's 2001 Policy Review the Manx Island is now wealthier than the United Kingdom on a per capita basis for the first time ever. In his introduction to the report, Chief Minister Donald Gelling MHK reveals that the Government has finally achieved its key economic target, set in 1987, to surpass the UK in terms of GDP.

Writes Mr Gelling: 'There was a big gap to be closed when this policy objective was established and it is a tribute to Manx businesses, both employers and employees, that the goal has been attained.'

In the final Policy Review of the current House of Keys, the Chief Minister looked back on the last five years during which time the Island experienced accelerated economic growth, record low unemployment, reduced taxation, improved public services and stronger reserves.

Annual spending on public services increased by 46% in real terms since 1996 to £354 million, over half (57%) of which goes to the Department of Health and Social Security and the Department of Education, and the government's reserve fund has grown from £90 million in 1994/95 to £239 million by March this year.

Mr Gelling says the Island has had a higher international profile than ever before, ranging from the 'Solway Harvester' sinking to global finance initiatives. He comments: 'Generally the Island has acquitted itself well when under the external spotlight and that is important for our international reputation.'

As for the future Mr Gelling warned that global economic difficulties arising from the consequences of the terrorist attacks in the USA on September 11 would lead the government to apply 'additional caution' in budgeting. He added: 'Any slow down will, however, give us some respite in terms of population growth and allow us some additional time to ensure that we can keep up with the need for housing, school places and other services.'

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