As the dust settles on this year’s Budget for the year ahead the Treasury Minister has revealed how he feared the island might have lost out over the vital FERSA agreement with the UK.

Alfred Cannan told Tynwald during his Budget speech that the agreement, which brought a £44m boost for the island’s coffers, had been clinched.

But speaking to Business News the Ayre and Michael MHK admitted there had been ’risks’ before the final outcome.

And as a contingency measure just in case it fell through he said he had held back £26m just in case of a ’negative outcome.’

The Final Expenditure Revenue Sharing Arrangement (FERSA) was established in 2016 with the aim of ensuring a stable and secure basis for the long-term future of the customs and excise agreement between the UK and the Isle of Man.

Talking generally Mr Cannan said that with the exception of the opposition of the Speaker Juan Watterson he was pleased Tynwald had given its seal of approval to the Budget.

The economic affairs team in the Cabinet Office had conducted a household income and expenditure survey and a business VAT survey during the 2018-2019 financial year which provided data from 1,000 families and more than 400 businesses.

Asked by Business News if we could have been in trouble if the agreement with the UK had not been reached, he said: ’There was always an element of risk around this, that it was going to work against us. We did not know what these surveys were going to say. We did

these surveys on business and personal spending with members of the public and businesses too.

’Those results had to be brought in and analysed and discussed.

’So we held back as of yesterday (Budget day last Tuesday) £26 million to deal with any negative outcome.’

Mr Cannan spoke to Business News shortly after appearing before hundreds of business people at the annual Budget breakfast organised by the Isle of Man Business Network.

He told the audience at the Palace Hotel, Douglas, that the FERSA deal was ’incredibly good news’.

He said the government was a big supporter of business. ’The results are there, we are growing the population now with tremendously low unemplyment figures more people are now in employment and there are nearly 200 new busineses on the tax register in the last year.’

Asked if the island is still an attractive place to try and bring more people here, he said: ’We are looking to attract key employees and supporting people bringing businesses - there is a whole raft of measures across the board to help anybody really that is coming to the island to work.

’High net worths also fall into that category and they remain a key asset for us but ideally we want active high net worths who are bringing bringing real jobs and employment with them.’

The tax cap for high net worth individuals has risen from £175,000 last year to £200,000 this year. (The tax cap is an upper limit on the amount of income tax a high net worth individual would be expected to pay).

Asked if this was a Budget for business, he said: ’Throughout the last four years and Budgets we have been supporting business.

’Business friendly has always been our mantra.’