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Any pressure for wage increases inside government would mean cash having to be clawed back from other areas.
That's the stark warning from Treasury Minister Eddie Teare, after a fall in the Isle of Man's annual rate of inflation went down from 6.8 per cent in August to 5.2 per cent last month.
Mr Teare is welcoming the news, but says wage claims could cause the new adminstration a big headache:
Reducing hospitality VAT would 'directly affect' provision of frontline services
But treasury minister promises 2026/27 Budget will look at ways to relieve some of the pressure
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No conversations with UK over a reduction in VAT rates for hospitality businesses planned
Treasury minister says rates have already been agreed
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