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2011-12 Budget

Due to Government action, spending has been reduced further and faster than previously planned.

In 2011-12:

  • We have achieved further savings of £25 million in addition to the £26 million delivered last year
  • Spending is £11 million below last year's rebalancing plan.
  • Staff costs are £26 million (8%) below the 2011-12 projected level and £9 million below last year's actual budget.
  • Staffing was reduced by 99 posts last year. This year there will be a further reduction of 285 posts. Therefore, the reduction over 2 years will be 384 posts.

In addition to these savings we have accommodated:

  • Gross Spending on benefits of £248 million, £10 million (4%) higher than last year, including £141 million on the State Pension and Pension Supplement.
  • Net spending on Health up by £7.5 million (6.5%), after adjusting for the transfer of shared services functions.
  • A Capital Programme of £101.8 million for Government Departments and Statutory Boards.
  • £67 million of construction schemes including, £21.2 million to be spent in the Local Authorities' Housing Programme.

In respect of Taxation:

  • The income tax standard rate for individuals remains at 10%.
  • The income tax higher rate for individuals remains at 20%.
  • Income Tax personal allowances unchanged at £9,300 for single persons and £18,600 for married couples.
  • Additional Personal Allowance for over 65's remains at £2,020.
  • The threshold at which the higher rate for individuals becomes payable remains at £10,500.
  • Increase in Personal Allowance Credit from £650 to £700 per person or £1,400 per couple
  • Removal of Tax relief on Class 4 National Insurance Contributions but do not increase rates of National Insurance on Class 1,2 or 4 contributions by 1% as introduced in the United Kingdom from April 2011.
  • Removal of Tax relief on new Educational Deeds of Covenant, and reallocation to student awards.
  • Cap on Mortgage and Loan Interest relief reduced by £2,500 to £7,500 per person per annum.

Further information:

Sheila Lowe, Chief Financial Officer

The Treasury

3rd Floor

Government Offices

Bucks Road

Douglas

Isle of Man

IM1 3PZ

Telephone:+44 1624 685586

Fax:+44 1624 685662

Email:Send Email

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