Tynwald unanimously approved the 2019 Budget after a debate lasting just over four hours.

Treasury Minister Alfred Cannan said it was a ’Budget of confidence in our island, in our economy and in our people’.

Chief Minister Howard Quayle said following tough decisions made since the ’seismic shock’ of losing £200m income following the VAT bombshell, public finances were now in a much better situation.

Mr Quayle said the government aimed to reduce reliance on reserves from £8m in 2018-19 to zero by 2022-23.

He said: ’It is only by having a successful and growing economy, with more businesses employing more people and paying more earnings, that we are able to fund measures.

’The successful economy has given us the foundation that has enabled us to increase many benefits over and above inflation, provide additional funding to our police force and inject additional cash into our health service.’

worse

But backbencher Chris Robertshaw (Douglas East) pointed out the cost of operations is now running £30m worse than forecast, the overshoot rising at £10m a year and set to reach £50m by the time of the general election.

Mr Robertshaw said government should not try to claim credit for the revision downwards of the unallocated savings target, saying this was not the consequence of savings made in the cost of operations but rather despite it.

He said: ’Everything we are not directly responsible for, linked to external factors, is doing well, very well. That which we are directly responsible for in operational terms is not going, by any reasonable measure, anything like as well.

’The size of government keeps creeping up, the cost of operations is consistently exceeding forecast while incremental ad hoc attempts to bring it under control are not yet delivering.’

Lawrie Hooper (Ramsey) described it as a ’steady as she goes’ Budget. He said without fundamental reform of the under-funded health service, the budget increase would be ’just the tip of the iceberg’.

He criticised the ’exorbitant’ 60% increase in planning appeal fees and he said there was nothing that convinced him that the planned savings target - down from £25m thanks to higher than expected receipts to £3m this year and £15m at the end of the five-year plan - was going to be met.

positive

Tim Baker (Ayre and Michael) said: ’It’s good to see the positive tone and optimism. And no doubt there will be cynicism and negativity from some. We clearly cannot give all things to all people in a Budget such as this.

’Not every aspiration can be satisfied and remain financially prudent. I think this is a good Budget, a confident Budget. We should be positive about it. We need to be positive about ourselves because if we’re not, who will be?’

Policy and Reform Minister Chris Thomas said he expected a consultation on local government rates reform to be launched next week - or the week after.

He said this would tie in, a couple of months afterwards, with local authority reform.

Mr Thomas said: ’This is one Douglas politician who wants to put it on the table that I have problems with four plus one as an idea of local authority reform. It can’t be about everybody else outside Douglas reforming and Douglas sticking as it is.’

Tynwald voted unanimously for the Budget by 22 votes in the House of Keys and nine votes in the Legislative Council.