Challenges Continue

The Isle of Man budget came and went yesterday with what appears to be mixed response.

There is no doubt the island faces some tough choices in the years ahead but it will take time for the population to get their 'heads' around what needs doing.

As a first step the budget seeks to start the process of change - marginal increase in taxation will impact the better off whilst ensuring the less well-off are not unduly impacted by additional tax. The increase from 18% to 20% will raise £9.4m

Revenue spending has been cut by £37.1m (without decreasing net spending on health and social care).

A 1% increase in Employee NIC will raise £7m

And £15m will be transferred from Reserves.

Could more have been done - my response is yes but at what cost - the Treasury Minister has sought to balance the books without threatening stability.

The challenge will be for the population including those in public service to recognise that we are in this together and that no one is exempt form the external pressures that the island is continuing to face.

The Isle of Man remains a stable economy and with the right resolve can survive the threats from outside.