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Incentives to encourage employment and no tax rise

Tue, 21 Feb 2012

There's to be no rise to the tax rates for Manx workers.

Treasury Minister Eddie Teare has revealed the budget in Tynwald this morning.

Income tax remains largely unchanged, with the rates, personal allowances and thresholds all the same as last year.

The tax cap is to rise from £115,000 to £120,000.

The Personal Allowance Credit is being reduced from £700 to £500.

Government staff pay is to remain frozen, and the overall cost of staff is reduced by £1.5m compared to last year.

Employers are being given an incentive to take on more staff.

There are to be National Insurance payment holidays for those giving jobs to NEETs, the long-term unemployed, Manx graduates and ex public sector workers.

Benefits for under 25s are to be cut to encourage them to work.

Mr Teare says there are many benefits to reducing unemployment on the Island [play clip]

Over the 2012 to 2013 financial year, Government will be spending £10,600 for every person on the Island.

This year's budget marks the first of a four year rebalancing plan.

In order to balance this year's accounts, £55m is to be taken from the Island's reserves.

Mr Teare also plans to make withdrawals from the reserves in the next two budgets, before rebalancing in 2015.

Members are now debating the contents of the budget before voting on whether or not to approve it.

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Media

• Eddie Teare MHK