Update on response to fiscal challenge

CHIEF Minister Tony Brown MHK has today provided an update on Government proposals being developed to manage the reduction in the Isle of Man’s share of VAT revenue.

Mr Brown said Government’s work on the issue was continuing, and the Council of Ministers had agreed to:

• A target of a ten per cent reduction in Government’s total staffing costs (as distinct from total staff numbers) in 2010/2011, which would save around £31 million and could be achieved in a number of ways.
• A critical review of all Government spending to identify efficiencies, savings and new opportunities while safeguarding essential services.
• A review of universal welfare provision and an assessment of the implications of greater targeting of support through an extension of means testing.
• Consideration of increased and new charges for some subsidised services provided by Government.

The Chief Minister said Government would prioritise further economic development. He also gave an assurance that Government would communicate with the public, business community, Government staff and their representatives to gain feedback on proposed changes.

Mr Brown concluded:

‘This year’s Manx Budget, to be delivered by the Treasury Minister in February, will be the start of an ongoing readjustment programme to secure the Island’s future which will include measures in the short term, medium term and long term. Change is inevitable, but it will be change that is carefully and properly considered.’