Treasury Minister Alfred Cannan will present an unprecedented Budget update today - and outline his plan for post-Covid economic recovery.

He has warned we are facing ’rough and rocky’ economic times in the next nine months.

For the first time, a Purple Budget book has been produced outlining the estimated impact of the Covid crisis on the Manx economy and public finances.

Mr Cannan is expected to say that the cost to the public purse has been significant.

While the cost of the various government support schemes has been lower than expected, Covid has delivered a major hit to government income.

Another impact on revenue has come from the UK Chancellor’s decision to cut VAT from 20% to 5% for tourism and hospitality for six months, a move mirrored here.

While the domestic economy appears to be bouncing back quicker than expected, there are international concerns with fears of a global recession, the continuing impact of border restrictions and the threat of a second wave of the virus.

Mr Cannan has already announced plans to set up a £250m borrowing facility which will need Tynwald approval today.

But he is expected to unveil a package of measures, funded from reserves, to invest in the economy, infrastructure and businesses.

Unemployment is predicted to rise when the current support schemes are phased out and it is likely that there will be investment in training and reskilling to get people back to work.

Some support schemes are likely to continue for certain sectors that will have been particularly badly hit by the pandemic such as tourism.

For coverage, see Thursday’s Manx Independent.