Treasury Minister Dr Alex Allinson MHK has issued his reaction to the UK Government’s Spring Budget Statement, delivered on Wednesday 6 March by the UK Chancellor, Jeremy Hunt MP.
Minister Allinson said:
‘Yesterday's statement by the UK Government was wide-ranging and contained a number of elements of interest from an Isle of Man perspective.
‘Moving their child benefit threshold will, of course, be welcomed by those on higher incomes in the UK. Our own announcements last month aimed to support working families - by raising child benefit rates across the board and increasing the amounts available for those with two or more children, significantly improving financial support for around 3,000 families. I also committed to review our own child benefit and income tax thresholds in next year’s Budget.'
He added:
‘I was pleased to note the UK’s commitment to invest in healthcare, in line with our Island commitment to ring-fence extra tax revenue and invest an extra £43.8 million in our NHS as well as £18.3 million extra for education.
‘The UK announced a 2p cut to National Insurance rates. In last month’s Manx Budget we kept rates the same but increased the thresholds meaning that someone on low pay will be £85.80 per year better off. Looking ahead, we are in the process of examining potential changes to our own NI process with the aim of bringing forward options for discussion by Tynwald later in the spring to ensure the future of the NI fund is sustainable.’
In accordance with the Spring Statement, the Isle of Man will introduce a tobacco duty increase of £2 per 100 cigarettes or 50 grams of tobacco from 1 October 2026. Alcohol duty rates will be frozen until 1 February 2025.
The temporary 5p cut in fuel duty rates will be extended until March 2025 and the planned inflation increase for 2024-25 will not take place.
The Isle of Man Government will replicate these changes with details being posted on the Customs and Excise website in due course.
Referring to the UK’s intention to introduce a vaping products levy from October 2026, the Minister said:
‘The Isle of Man has been proactive in this area by introducing legislation to restrict the availability of these products to children and young people. The UK’s aim of establishing a levy to be paid by manufacturers on imports by 2026 will be monitored closely by our Customs and Excise team in the coming months as the consultation process takes place.’
