This year the response has been in a similar vein with bosses generally praising his realistic and pragmatic approach to the problems facing the Manx economy.

Steve Locking, managing director of independent financial advisers Edgewater, says that just as in 2009 Treasury Minister Allan Bell has risen to the challenges facing him.

'Twelve months ago Allan Bell revealed his most difficult budget yet,' said Mr Locking.

'As events unfolded during the latter part of 2009 he will have realised his comments would be shortlived.

'However, once again our Treasury Minister has risen to the challenge. There is no kneejerk reaction to events but a clear and focussed path for the Island to follow over the next five years.

'There is some immediate pain with rises in tax, National Insurance and electricity costs which was to be expected.

'The forthcoming general election in the UK could well pre-empt an increase in VAT to 20 per cent if media comment is to be believed.

'This would benefit the Isle of Man greatly and so while a five year plan is mapped out, there may be some room to manoeuvre if this is the case.'

Mr Locking said that Mr Bell's response to the massive cuts in the VAT revenue sharing agreement with the UK has been measured and reaffirms the general view in the Island's business community that Mr Bell is up to the challenges ahead.

'There has undoubtedly been a lot of concern in recent months following the VAT announcement and we aren't out of the woods yet,' added Mr Locking.

'But clearly today's Budget statement shows there is no sense of panic and Mr Bell continues to impress.

Brendan Harper, technical services manager with Friends Provident International, said the company was particularly interested in Mr Bell's plan to produce a consultation document on business taxation in the Isle of Man.

'Friends Provident International will watch this area with interest, and would expect to take part in such consultation,' said Mr Harper.

'The challenge for government will be to balance the need to comply with international trends in business taxation whilst maintaining the Isle of Man's position as an attractive place from which to do business.'

There was a more critical view of the Budget expressed by Mary Tait, senior investment manager for IOMA Fund and Investment Management.

'Mr Bell quantifies the chief minister's request that local government departments reduce their salary costs by 10 per cent at £31.64m,' she said

'While around 100 posts have been saved through 'natural attrition', this only amounts to £3.6m in wage and salary cost savings, indicating there is some way to go to meet the five-year goal.'