THE UK’s budget has hit government income in the Isle of Man.
Treasury Minister Eddie Teare MHK said: ‘No doubt motorists and beer drinkers will welcome the abolition of the planned September fuel duty increase, and the 1p cut in beer duty.
‘The cost of both these changes will reduce Isle of Man Government income by around £900,000 in 2013-14, compared with the budget estimate.’
The Minister welcomed the focus on economic growth from the Island’s largest trading partner, although UK Chancellor of the Exchequer cut the prediction of growth in the UK economy.
Mr Teare said: ‘We need a successful UK economy and the steps they are taking to simplify and lower corporate taxation, encourage small business and encourage the use of investment markets either offer opportunities for Island business or reflect changes we have already made.’
He spoke to the Manx Independent about Mr Osborne’s assertion that the UK would be able to recoup £1bn from the Isle of Man, Guernsey and Jersey in taxes from individuals. His comments will be in tomorrow’s newspaper.
The minister finished by noting some of the major UK policy developments that could impact on our own work.
Mr Teare added: ‘The Chancellor announced changes to State Pension arrangements, and new support for home buyers, that we will need to factor into our review of reciprocal social security arrangements, and the housing review. It is important that we consider the impact of UK proposals carefully and do not jump to conclusions as to the benefits or otherwise at this stage of what can be far reaching proposals.’
The minister said he and his Treasury colleagues and staff would be working through details of the UK budget in the next few weeks.
The Isle of Man Examiner will next week include its monthly 16-page Business Word supplement, which will feature reaction to the UK budget.
