The launch of a £100m Economic Strategy Fund was announced in the Budget.

Treasury Minister Dr Allinson said the fund was aimed at ‘triggering those parts of the economy we really want to reach’.

The Economic Strategy Fund will be used to leverage investment in developing privately-owned brownfield sites through the Island Infrastructure Scheme, administered by the Department for Enterprise.

Its a key plank in the government’s strategy to grow the economy by developing the infrastructure and services to cater for an expanded population of 100,000 by 2037.

The strategy envisages the creation of 5,000 jobs and the generation of an extra £200m a year of income by 2032.

Some £62.6m will be transferred from reserves to help create the new fund which also absorbs the economic development fund, marketing initiatives fund and the town and village regeneration fund.

Treasury will be able to approve funding from the ESF of up to £1m, while between £1m and £5m will require the green light from the Council of Ministers and Tynwald backing will be needed for sums over £5m.

Dr Allinson insisted ESF funding would not go to the Manx Development Corporation, which is developing government-owned brownfield sites funded from private capital as an arm’s length company with Treasury as the sole shareholder.

MDC is currently involved in the redevelopment of the old nurses’ home in Douglas and is behind plans for 170-home ‘Westmoreland Village’.

Dr Allinson said: ‘Their funding will be raised privately. They will not be drawing down money from the Economic Strategy Fund.’

The Budget Pink Book notes that government reserves could fund MDC projects.

It states: ‘Where projects are to be taken into development, the MDC will be expected to seek loan funding on commercial terms, either from Treasury or from external sources, to finance any construction costs.

‘Any further equity or loan funding to the MDC will be considered as and when specific projects are identified and this has not been included within the 2023-24 budget. This funding will be made directly from general reserves.’