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Raising taxes by 1% could raise £10m

Similar rise in NI could yield £17.8m

Raising taxes by a penny could bring government an extra £10 million per year, according to the Treasury Minister.

Alfred Cannan was responding to a question in the House of Keys from South Douglas MHK Kate Beecroft.

She wanted to know what effect a 1% increase on income tax rates and national insurance contributions would have on government revenue.

Bumping the lower 10% band to 11% would generate up to £2.8 million, he said, and the same increase on the higher 20% band £7.1 million.

For context, that would almost be enough to cover a year's overspend at Noble's Hospital.

Similar increases to National Insurance contributions could also raise up to £17.8 million in additional income.

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