New Treasury Minister Michael Crowe says his department is reviewing the measures announced in this week’s UK Budget

In accordance with the Autumn Statement delivered by Chancellor John Healey, the Isle of Man will extend the reduction in the VAT rate from 5% to 0% on domestic electricity supplies.

Introduced on October 1 and due to run until March 31 next year, the measure will now remain in place until June 30.

And in line with the Customs and Excise Agreement with the UK, the Isle of Man will continue to apply the cut in fuel duty by 5p per litre until June30.

A reduced duty rate for red diesel, introduced on June 15 until the end of the year, will also be extended to that same date.

Treasury Minister Mr Crowe MHK said: ‘Treasury is reviewing the measures announced today by the UK Government to understand where there may be implications for the Isle of Man.

‘As we look towards the Isle of Man Budget in February 2027, our priority is to strike the right balance between supporting people and businesses today and maintaining strong, sustainable public finances for the years ahead.’

The UK Chancellor said his Budget - the first under the premiership of Andy Burnham - would gives families and businesses ’breathing space’ from rising costs, with action on energy bills, fuel duty, wages and the everyday cost of living.

He announced a £100 Household Energy Payment for up to 20 million households in bands A to D in England, with funding for similar support provided to the rest of the UK.

And he said the UK government will ask Ofgem to abolish gas standing charges and move them to unit rates, making bills fairer and giving households more control over what they pay.