The Isle of Man is to lose £75 million per year in the UK government’s second raid on the VAT sharing agreement.
Fears the Manx government will have to find further new ways to raise revenue and make substantial cuts to spending were confirmed in Tynwald today (Tuesday).
A total of £30 million will be cut in the next year, followed by £50 million and increasing to £75 million in three years time.
Mrs Craine called the loss 'significant and unwelcome' but said it was the best deal realistically available.
Whilst discussions with the UK have been concluded, Mrs Craine says the new agreement hasn't yet been signed and she supported a move by Michael MHK David Cannan for an emergency debate on the issue.
Mrs Craine told the court government had been in extended negotiation with HM Treasury on all aspects of the revenue sharing arrangement.
The new formula is known as the Tax based Measurement Method or TBMM.
She spelled out just what it would mean for the Island.