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Minister reveals Island's budget

Tue, 15 Feb 2011

The Treasury Minister has confirmed cuts are being made across Government, but tax is staying the same.

Anne Craine delivered her budget speech in Tynwald this morning, announcing cuts to all Departments except Health.

The public sector salary freeze will continue, and a further 285 posts will be cut over the coming year, after 99 were lost this year.

However, Mrs Craine did announce that the Island was ahead of schedule in rebalancing the books.

A further £10 million will be spent on benefits this year, and nearly £300,000 will be put towards starting an Island-wide bowel screening program.

A 7.7% increase was announced to the Personal Allowance Credit.

Government spending will be at the same level as two years ago, with gross spending at £872.9 million. This equates to £10,900 spending for each Manx resident.

The attribution regime for individuals is being cut, having been declared harmful by the EU. However the Treasury believes this will secure the future of the zero-10 business tax system.

Mrs Craine warns further change will be needed to rebalance the Island's finances, but is optimistic after seeing the first year of savings [play clip]

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Media

• Anne Craine MHK