All government departments will receive increased budgets but health and education are the biggest winners with an extra £59m between them.

But they have been warned they cannot go over-budget again – and must identify and implement cost improvement plans.

The Department of Health and Social Care will be provided with a significant increase of £41.2m .

To support ongoing investment, a long-term financial plan will see the DHSC’s annual expenditure budget gradually increase before topping £400m in 2028-29, which includes increases to the Manx Care mandate in line with the conclusions of the independent report by Sir Jonathan Michael in 2019.

Funding ringfenced for healthcare from the 2% increase in upper rate income tax totals £20m.

Department of Education, Sport and Culture funding will rise by over £18m to stand at more than £141m.

A total of £3m is being committed to support the initial rollout of the Childcare Strategy, with £35m available over five years.

The Treasury Minister told Members: ‘We are currently working with the childcare sector to see how a phased approach can be used to extend the existing pre-school credit scheme to 3 to 4 year olds and support the sector to develop and provide more accessibility.

’All departments will see their budgets rebased to take account of inflationary pressures and pay-related costs — Infrastructure will receive an additional £7.2m, Cabinet Office £4.6m, Home Affairs £4.2m, Treasury £3.3m, Enterprise £1.3m and Environment, Food and Agriculture £1.3m.