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BELL UNVEILS ISLE OF MAN BUDGET
TREASURY Minister Allan Bell has unveiled his Budget for the coming year.
Mr Bell said this morning: 'The Isle of Man is entering a new era in which it will be more important than ever to keep on growing our economy so that we can afford to fund public services and care for the less fortunate in our community.
'At the same time there has to be a new drive across government to focus on priorities, make the best possible use of the resources available and maximise the value for taxpayers' money.'
But there was a warning over government pay.
Mr Bell said: 'Levels of public sector pay are now a cause for serious concern within Government and within Treasury. Over one third of Government spending now relates to direct employment costs, around 300 million a year.
'When you consider that public sector workers also have access to generous final salary pension schemes, and better job security, then in my opinion the gap between public and private sector remuneration has grown too wide.'
He added: 'A 1% increase in salaries will cost government around 3m per annum and so I am setting aside a figure of 7.5m to cover all pay increases for 2007-8.'
Tynwald voted this afternoon to approve the Budget, with only Liberal Vannin members Peter Karran (Onchan) and Bill Malarkey (Douglas South) voting against.
READ MR. BELL'S SPEECH IN FULL
Key elements of the Budget, now being debated in Tynwald, include:
- Income tax personal allowances increased by 2.1 per cent to 8,850 for single people and 17,700.
- Personal income tax standard rate remains at 10 per cent, with the high rate at 18 per cent.
- Personal allowance credit band remains at 2,500 for people who do not fully utilise personal allowances, with maximum credit incrased 20 per cent to 420.
- The tax cap on total income tax payable per person remains at 100,000.
- A 3.1 per cent (16.3m) increase in government revenue spending on public services.
- Additional funding for fuel efficiency in public sector housing.
- Corporate charge to remain at 250 per company, but to be collected as part of the increased company annual return fee.
- Overseas aid budget increased by 29 per cent to 1.8m.
- Capital spending programme of 103m.
- 3.1 per cent increase in spending on public services, including 9.3m more for DHSS and 5.8m more for education.
- New legislation on the taxation of pensions.
- 2.2p per litre supplementary rebate on the rate of duty on hydrocarbon oils, in respect of biodiesel used in the Isle of Man.
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Weather for Isle of Man
Wednesday 08 February 2012
Today
Sunny spells
Temperature: 3 C to 4 C
Wind Speed: 23 mph
Wind direction: South
Tomorrow
Light rain
Temperature: 7 C to 8 C
Wind Speed: 20 mph
Wind direction: South west
