Which way will pendulum swing over VAT revenue?

Chief Minister Allan Bell MHK

Chief Minister Allan Bell MHK

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It’s too early to say how the pendulum might swing on VAT, says Chief Minister Allan Bell.

Mr Bell said a data collection exercise that will ultimately determine the island’s share of VAT revenue was drawing to a close.

He told the Examiner: ‘We’re expecting a final outcome certainly by the end of the year. All the data has been gathered and both sides now are considering the implications. It’s too early to say which way the pendulum might swing.

‘Clearly it’s a matter of concern that we have a positive outcome. It’s going to be challenge if we take a further hit. But we do have substantial reserves available if a negative outcome was to be agreed.

‘We’re not planning for a loss but we need to recognise a reduction might take place. It would be wrong to speculate as we just don’t know.

‘Losing a third of our income was a massive blow. We are close to rebalancing our finances. The economy is growing strongly again, generating new revenue. The Isle of Man clearly is in a stronger position to withstand any changes.’

Data from 80 per cent of businesses is currently being analysed.

Results of a survey of household income and expenditure were published earlier this month.

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