THE island’s rate of inflation – currently 6 per cent – is a cause for concern, Treasury Minister Anne Craine told MHKs.
Mrs Craine said that while prices of goods and services do have a local element, the overwhelming majority of goods consumed in the island were imported and their prices are essentially set elsewhere.
She told the House of Keys: ‘Despite its concerns, government is limited in what it can do.’ But it could try to protect those on low incomes, she added. Her Budget included a freeze on employee National Insurance contributions and a 7.7 per cent increase in Personal Allowance Credit. She said she was not in a position to reduce excise duty on fuel – a measure planned for the outer islands of Scotland.