The island’s income tax system is fair to all and sustainable in the long-term, Treasury Minister Alfred Cannan has insisted.

He told Tynwald last week: ’I do consider that the system is sustainable in the long term, international events permitting.’

Responding to questions from David Cretney MLC, Mr Cannan said he was committed to ensuring the regime was as fair as possible.

He pointed out that personal allowances had increased from £10,500 to £13,250, over the past two budgets.

’We have taken some 5,000 individuals out of the scope of income tax and - as a result of these measures - almost all our families are better off by £350 if you are an individual, or £700 in the case of a jointly assessed couple,’ he told Members of Tynwald.

’We have got more people in work, we are creating more jobs, we have reduced unemployment to some of its lowest levels for almost 20 years, and I think that the income tax system as it is currently standing is doing its job.’

Mr Cretney asked whether the gap between the positions of ’standard’ families in the island and in the UK was narrowing.

The minister said he was conscious that low to middle-income families had been impacted by increases in the cost of living.

’We have recognised those pressures and are doing what we can to ensure that we are putting as much money back into the pockets of those families as possible,’ he said.

’We have been pursuing clear policies, such as raising the minimum wage requirements and discussions around the living wage.’

He said that would help the island ’stay ahead of its competition’.