A former Treasury Minister has warned that government finances are a major cause for concern - and that without drastic action the island’s reserves will run out.

Eddie Teare, who was in charge of the Manx exchequer between 2011 and 2016, is urging voters in next month’s general election to choose wisely at the ballot box, saying the next administration will face some very difficult decisions.

He said: ‘During the end of my term we were working through the effects of the VAT reduction.

‘The deficit in 2016-17 was £87m which fell to £8m the following year as the adjustments took effect.

‘However, during the last five years the cumulative deficit was over £500m and continues at a rate of £100m per annum. This compares to Jersey which had a surplus budgeted in last years’ budget of £44m.’

In total, some £460m has been drawn from reserves over the last eight years since 2018-19.

‘Without drastic action our reserves will run out,’ Mr Teare warned.

‘In my opinion we should drill down further in government spending and compare it based on spending per head of population with, for example, Jersey and the UK.

‘In this year’s budgets the IoM allocated £18,280, Jersey £12,307 and the UK £12,958. Should we not be analysing why the difference occurs?

‘For health spending the figures are IoM £4,849, and Jersey £3,096 although there is a charge for patients. We followed the UK in setting up Manx Care, should we not follow their example by abolishing it?

‘I have had various interactions with the medics in recent years and the feedback from the staff is very illuminating. Increasing and overbearing bureaucracy, knee jerk reactions to cut costs having severe implications elsewhere.

‘Firm action needs to be taken as soon as the next administration is in place. This will entail difficult decisions and more openness with the public. Should not the ongoing deficit be spelled out to those who they serve?

‘The upgrading mechanism on the state retirement pension, the “triple lock”, needs to be abolished.

‘The UK Government Actuary, in their review of the sustainability of the NHI Fund, is forecasting that it is likely to be exhausted in the medium term. What will be left for the next generations?’

He also asked: ‘Why should well-off pensioners be entitled to free TV Licences and prescriptions? There was a payment of £300 per pensioner made some three years ago, which was not means tested. Why not? We seem to be able to means test other state benefits.’

Mr Teare said uncontrolled immigration was another issue that needed to be tackled.

He said: ‘There is already enabling legislation on the books. We need an increase in the working age population - not dependants or retirees.

‘Additionally, when considering the application for residence, any additional demands upon our health and social services need to be considered. Are they bringing children with special educational needs or aged parents with them?’

Mr Teare also questioned what steps the government had taken to broaden the economic base and encourage new sectors into the economy.

He said: ‘Government cannot raise tax revenue without businesses generating profits.

‘I notice that both Jersey and Guernsey occasionally advertise in the weekend edition of the Financial Times, the former advertising stable taxation. Is this not a dig at the IoM which raised the rate to 22% and then cut it by 1%? We need to stay competitive.’

Mr Teare insisted he was not publicly supporting any particular candidate, but added: ‘My advice to voters is, before you cast your vote consider - has your preferred candidate got the ability and will-power to deal with these pressing issues?’