2012-13 Budget

Government has continued to make savings whilst adopting a new 4 year rebalancing plan.

In 2012-13:

  • 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:

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