Government has continued to make savings whilst adopting a new 4 year rebalancing plan.
- We have achieved further savings of £12 million to add to the £51 million saved since 2010-11.
- Spending is £35 million below last year's plan.
- Comparative staff costs are £1.5 million below last year's budget.
- Staffing was reduced by 170 posts last year. The overall reduction over 3 years is 345 posts.
In addition to these savings we have accommodated:
- Gross Spending on benefits of £249 million, £11.5 million (5%) higher than last year, including £151 million on the State Pension and Pension Supplement.
- Net spending on Health up by £3.6 million (3%).
- A Capital Programme of £83 million for Government Departments and Statutory Boards.
- £55 million of construction schemes including, £18.1 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.
- Personal Allowance Credit reduced by £200 per person.
- A National Insurance Rebate scheme is introduced to defray the employment costs of firms taking on additional employees.
- Restriction of tax relief on mortgage interest, loan interest etc to lower tax rate of 10%.
- Removal of Tax relief on maintenance payments and maintenance received is no longer classed as taxable income.
- Increase in National Insurance Employees Primary threshold by £3 per week and Upper Earnings Limit by £20 per week.
For further information:
Isle of Man
+44 1624 685586
+44 1624 685662