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Allinson: 'Significant opportunities we must capitalise on'

£1.3 billion to be spent in next financial year

Government is expecting to spend £1.3 billion in the next financial year.

That equates to £16,343 for each person living on the Island.

Today (20 February) the treasury minister unveiled his second Budget saying there are still ‘significant opportunities’ that the Island ‘must seek to capitalise on’.

Alex Allinson told Tynwald: "This Budget provides continuing increased investment in our core services, health and social care, education and infrastructure; the maintenance of which are vital for ensuring we remain an attractive place to live and work — a key element of Our Island Plan and Economic Strategy."

High rates of inflation have led to ongoing pressures on the cost-of-living, energy costs and general expenses for individuals, companies and government.

And despite inflation expected to gradually subside it’s expected that government will continue to face cost pressures with Dr Allinson saying ‘strong budgetary control’ will be needed.

“The Island’s economy has continued to perform strongly despite facing another year of uncertainty which is a testament to the resilience of our community and business sectors in the face of challenge.” – Alex Allinson (Treasury Minister)

All government departments have had their budgets increased – Treasury says they have been ‘rebased’ to take into account inflationary pressures and pay-related costs.

The aim, the department says, is to preserve essential public services whilst raising sufficient income to meet expenditure and reduce the reliance on reserves.

  • The Department of Health and Social Care will receive an additional £41.2 million
  • The Department of Education, Sport and Culture will receive an additional £18 million
  • The Department of Infrastructure will receive an additional £7.2 million
  • Cabinet Office will receive an additional £4.6 million
  • The Department of Home Affairs will receive an additional £4.2 million
  • Treasury will receive an additional £3.3 million
  • The Department for Enterprise will receive an additional £1.3 million
  • The Department of Environment, Food and Agriculture will receive an additional £1.3 million

The Climate Change Fund current, unallocated, budget of £25.7 million will be used to assist departments in meeting the Isle of Man Government’s net zero targets by 2050.

The Economic Strategy Fund will retain £47.9 million of unallocated funds to support the development of infrastructure and services as government aims to grow the population.

Tynwald will vote on the Budget later today.

Find out more about this year's Budget and how it will affect you by clicking HERE. 

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