More public sector staff cuts on the way

Tue, 15 Feb 2011

The Manx government is on its way to rebalancing its books according to the Treasury Minister.

Anne Craine has delivered her budget speech in Tynwald today.

The budget is the second part of a five year plan to get back on track after the massive drop in the amount of money the Island earns from VAT.

Mrs Craine says the government is ahead of schedule in rebalancing it's finances but a lot more has to be done.

There'll be more public sector staff cuts over the next year - 285 posts will go.

More welcome news is that income tax rates will stay the same and spending on health is to increase by 7.5 million.

However, the government plans to make an extra half a million pounds a year by reducing the cap on mortgage and loan interest relief to £7,500 per person.

Politicians have spent the day debating the budget.