Isle of Man Budget Update at a glance
- An increase to the personal income tax allowance of £250 to £14,500 will lift approximately 300 people out of the tax net and reduce income tax by up to £50 for individuals and £100 for jointly-assessed couples.
- Key rises in the following benefits:
- Basic state pension (3.1%)
- Additional pension – ‘SERPS’ (3.1%)
- Manx State Pension – up to full amount (3.1%)
- Manx State Pension – protected amounts (3.1%)
- Child Benefit (5.0%)
- Employed Person’s Allowance – basic allowances and allowances for children (5.0%)
- Carer’s Allowance (15.0%)
- Attendance Allowance (5.0%)
- Disability Living Allowance (5.0% generally, 3.1% for higher rate mobility component)
- Income Support Carer Premium (26.4%)
- Income Support Disability and Disabled Child Premiums (5.0%)
- Nursing Care Contribution (3.1%)
- The increase in Carer’s Allowance will benefit around 550 carers.
- Around 19,000 pensioners will see their State Pension increased by 3.1%.
- Approximately 3,300 individual and families on low incomes will benefit from increases in Income Support and Jobseeker’s Allowance.
- £42 million of new funding is allocated to climate change across both revenue and capital budgets.
- A total of £16.68 million has been allocated within the Budget in relation to new services and growth funding to Manx Care, including developing the 111 service and supporting services in the areas of long COVID/ME, palliative care and the air ambulance service.
- An additional £2.74 million will enable the Department of Education, Sport and Culture to increase Additional Educational Needs provision.
- £1.2 million has been allocated to the Department for Enterprise’s Motorsport Division to support the return of the TT and MGP.
- £314,000 will allow the Department of Home Affairs to meet the running costs of the Sexual Assault Referral Centre.
- A five-year capital investment programme of £485.3 million includes a dedicated Sexual Assault Referral Centre, funding for the continued roll out of the fibre optic network, completion of the Balthane Gateway, an upgrade to King Edward Pier and improvements to visitor facilities at the Sea Terminal.
- Further funds of £10 million have been allocated to the Economic Fund to continue to support the Island’s recovery from the pandemic.
- A new Housing and Communities Fund has been established with a balance of £2 million to support the work of the Housing and Communities Board.
- The Healthcare Transformation Fund will be topped up by a further £7 million to support the ongoing implementation of recommendations from the Sir Jonathan Michael report.
- The TT Homestay concession will become an income tax allowance, with the tax-free amount increasing to £2,350.
Further information from:
Caldric Randall, Chief Financial Officer
Isle of Man
+44 1624 686433
+44 1624 685662