The Isle of Man Budget 2023
The Treasury Minister has set out his 2023 budget, but what is it going to mean for you?
We’ve got everything you need to know right here.
- The income tax personal allowance will remain at £14,500 for a resident individual and £29,000 for a jointly assessed couple.
- For higher earners, the personal allowance will be tapered and reduced by £1 for every £2 that a person’s total income is above £100,000 (£200,000 for jointly assessed couples). This means if a person’s total income is £129,000 (£258,000 for jointly assessed couples) or above their personal allowance will be zero.
- The income tax lower rate for individuals remains at 10% and the higher rate at 20%. The threshold at which the higher rate of income tax becomes payable remains at £6,500 for an individual and £13,000 for a jointly assessed couple.
- The first £600 of any general benefits in kind, provided to an employee by an employer, will be exempt from income tax. Only the amount above £600 will now be taxable. This will not apply in respect of accommodation and associated expenses. The treatment of bicycles, cars and fuel remains unaffected.
- The National Insurance Holiday Scheme is amended as follows from 6 April 2023:
- The maximum value of a refund is increasing from £4,000 to £4,400
- The minimum annual gross salary which must be earned in order to qualify for a refund is increasing from £21,000 to £23,000
- The requirement to work a minimum number of hours to qualify for a refund is being removed
- The National Insurance thresholds and upper earnings limit will be increased by 5%. Class 2 and Class 3 rates will be increased accordingly.
- Key rises in the following benefits:
- Following the restoration of the ‘triple lock’ uprating -
- Basic state pension (10.1%)
- Additional pension – ‘SERPS’ (10.1%)
- Manx State Pension – up to full amount (10.1%)
- Manx State Pension – protected amounts (10.1%)
- Maternity allowance, adoption allowance and paternity allowance (16.8%)
- Child Benefit (9.8%)
- Employed Person’s Allowance – basic allowances and allowances for children (9.8%)
- Carer’s Allowance (10.7%)
- Attendance Allowance (9.8%)
- Disability Living Allowance (9.8% generally, 10.1% for higher rate mobility component)
- Income Support Carer Premium (17.1%)
- Income Support Disability and Disabled Child Premiums (9.8%)
- Nursing Care Contribution (10.1%)
- The increase in Carer’s Allowance will benefit almost 600 carers.
- Around 19,000 pensioners will see their State Pension increased by 10.1%.
- Approximately 3,500 individuals and families of working age on low incomes will benefit from increases in Employed Person’s Allowance, Income Support and income-based Jobseeker’s Allowance.
- Economic Strategy Fund established with funding of £100 million to support delivery of the Economic Strategy for the Island.
- A five-year capital investment programme worth £442.4 million, with £233.5 million allocated to Central Government schemes.
- The Healthcare Transformation Fund will be topped up by a further £3.5 million to support the ongoing implementation of recommendations from the Sir Jonathan Michael report.
Spending equates to £15,243 per person
Total Government gross spending projected for 2023-24 equates to around £15,243 per head for every man, woman and child of the Island’s population.
This per person figure includes:
- £4,538 for Social Security payments such as the State Pension, Income Support and Child Benefit and allocation of National Insurance funds towards the NHS
- £3,787 for Health and Social Care Services, of which £1,651 relates to Noble’s Hospital, £762 for Primary Care, £748 for Social Care Services, £227 for providing free or subsidised prescriptions or drugs and £232 for treating Manx patients in the United Kingdom
- £1,592 for Education, including £129 for University Fees
- £474 for the Police, Fire, Prison and other parts of the Department of Home Affairs
- £266 for supporting the Department of Environment, Food and Agriculture, including the Office of Fair Trading & Road Transport Licencing Committee
- £180 Net Expenditure (after income) for Public Transport and Heritage Railways
- £141 for Waste Management, in addition a further £80 raised via local authorities or business waste charges
- £87 for Sports, Recreation and Youth Services, including subsidising regional swimming pools
- £43 for Culture, including the Villa Gaiety
Capital programme commits £230m over next five years.
A capital programme commits more than £230m over the next five years to deliver approved Central Government schemes and progress the aims of Our Island Plan.
Details were revealed today as part of the Treasury Minister’s Budget announcements, including the introduction of a new quarterly approvals process to improve financial planning and accuracy.
Funding in this year’s programme includes an additional £2.3 million to deliver the Sexual Assault Referral Centre, an additional £3.36m for improvements to King Edward VIII Pier, £495,000 for mobile classrooms and a further £780,000 to support the replacement of radiology equipment at Noble’s Hospital.
The Climate Change Adaptation Fund will receive a further £5.4m to help protect the Island and its infrastructure from the effects of changing global weather patterns.
Investment in the Island’s highway network will see £6.125m committed to improvements and refurbishment as part of a rolling scheme, while £1.155m will be available for structural maintenance.
Treasury Minister Dr Alex Allinson MHK said: ‘We have focussed on the creation of a realistic and deliverable capital programme which will be fully funded from revenue in the medium term. Only active schemes have been included in the main programme and those that require further feasibility studies and design have been redirected to the Project Development Fund. The fund has been provided with an additional £8 million to support this change.’
A review of the way the programme is established and funded, aimed at streamlining and modernising the capital element of the Budget process, has now been completed. Along with the results of a Strategic Infrastructure Needs Analysis to provide a full understanding of Government’s asset management commitments over the next 10 to 20 years, the review will enable improved forecasting and financial planning.
Departments previously submitted bids for capital funding in August or September each year for consideration as part of the following year’s Budget. This provided a single opportunity in a year and led to incidents of approved business cases becoming inaccurate through changes to project requirements and costs – most recently affected by a rapid rise in inflation.
From this year, a quarterly approval process will be introduced for capital schemes in February – as part of the annual budget – as well as June, September and November. Schemes that have successfully passed through the design and feasibility process will be eligible for approval, subject to the necessary agreement process.
The Treasury Minister told Members: ‘We recognise that schemes will be developed throughout the year and are therefore proposing a fundamental change to the way that capital schemes are approved. We believe that this will improve our financial planning process and ensure that only fully developed schemes are presented to Tynwald for approval and implementation.’
Manx Budget Videos:
The 2023 Budget explained with Phil Gawne - Part 1
The 2023 Budget explained with Phil Gawne - Part 2
The 2023 Manx Radio Budget Programme
BUDGET 2023: Overall funding for Government Departments
2023 The Budget and You:
Whatever walk of life you're from or whatever you enjoy doing, we can tell you how the decisions made in this budget will affect you.
We're Jointly Assessed
I'm a Parent
I'm Living with a Disability
I'm a Carer
I Receive Benefits
Government's Staffing Costs
Covid recovery and cost of living
Climate Change Contingency
TT and MGP
Heritage and Culture
2023 Budget Case Studies:
Want to know how the government's money is split between each department? It's broken it down for you here:
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Budget in Full:
You can find the Treasury Minister's speech and documents here.
Budget Day Coverage - Tuesday 21 February:
- Beth Espey and Phil Gawne live from the Legislative Buildings hosted Manx Radio's Budget Programme providing analysis, opinion and the facts on the budget with a host of guests including politicians, business leaders and a live audience.