Island to gain £25m from UK VAT changes

Wed, 23 Jun 2010

Treasury Minister Anne Craine

The Isle of Man is set to gain around £25million a year due to changes announced in the UK's emergency budget.

It's estimated that the rise in VAT will bring in this amount each year.

Treasury Minister Anne Craine says the sum will help the Government meet the budget shortfalls currently projected over the next few years.

She adds that the increase in VAT from 17.5% to 20% gives greater budgetary flexibility, but that her Department will still need to reduce spending overall.

The Treasury says it will spend the coming weeks examining the detail of the UK budget, and analysing how it affects the Isle of Man.