Tynwald has backed new Treasury Minister Chris Thomas’s first Budget - despite concerns that reserves would be plundered once again to balance the books.

And there was criticism from backbenchers that headline-catching announcements on tax give-aways were all about trying to woo voters at the ballot box come the September election.

The most stinging criticism came from Rushen MHK Michelle Haywood, sacked last month as infrastructure minister, who pointed out that raising the personal allowance to £17,000 would result in the loss of £24m tax revenue each year.

She said: ‘For four years we’ve spoken about strong and stable government and fiscal responsibility and yet now, with an election looming on the horizon, we’ve abandoned those.’

She likened public finances to a travelling circus, the tent the government finances, the poles and ropes the revenues that keep it upright, with Mr Thomas the juggler or the illusionist and the Chief Minister as ringmaster.

Raising the tax allowance was like lifting the canvas of the circus tent, she said. This might please the crowd, she said, adding: ‘We the audience are being asked to applaud while hoping that the poles don’t shift, the ropes don’t snap and the whole economy doesn’t come crashing down around us.

‘The critical failure of this Budget is that it creates a £24m recurring hole while trying to claim financial responsibility.’

Ramsey MHK Lawrie Hooper also criticised the Budget, describing the state of the public finances as ‘worse now than at any point in this administration’ and warning the government is ‘mortgaging our future’.

Rob Mercer MLC said: ‘I cannot understand why we are proposing an unfunded tax giveaway in an election year. That does not feel appropriate or responsible.’

Perhaps surprisingly, Ramsey MHK Dr Alex Allinson, who was the treasury minister up until a month ago, said he would support the Budget.

He said: ‘It is absolutely right we invest in our island, provide well-funded public services, and avoid privatisation.

But he added: ‘In my time as a minister, I've always tried to avoid making headline catching announcements in order to grab votes.’

Chief Minister Alfred Cannan said the rise in the personal tax allowance was the ‘most tangible and direct way this government can put real money back in people’s pockets.’

Highlighting how healthcare expenditure has spiralled since 2021 - from £270m to reach £404m this coming financial year - he said this continued growth was a ‘real concern’ that could present a ‘serious and significant threat’ to future Budgets.

Onchan MHK Rob Callister pointed out government had drawn down around £558.5m from reserves since April 2022. The projected draw down for 2026-27 is £126m.

He welcomed the ‘eye‑catching’ headline on the personal allowance, saying it would provide ‘some meaningful support’ to taxpayers - but suggested a better way to target low and middle‑income families would be to adjust the 10% tax band.

Arbory, Castletown and Malew MHK Tim Glover said he was ‘all for putting money in people’s pockets’ but it had to be done responsibly unlike this ‘crash, bang, wallop’, ‘vote-catching’ Budget. He pointed out increasing the personal allowance would reward high earners as well.

Fellow constituency MHK Jason Moorhouse described it as a ‘look at me, razzmattaz’ Budget and questioned whether ‘an extra few quid’ in people’s pockets would lead to a noticeable boost for local businesses.

In his closing remarks, Mr Thomas addressed the structural deficit, saying the picture was ‘much rosier than people would have you to believe’, and compared the forecast figures totalling £555m since 2021 with the actual out-turn of £376m.

Tynwald voted to approve the Budget by 16 votes to eight in the House of Keys and by five votes to two in the Legislative Council.