Government to draw on reserves

Tue, 21 Feb 2012

The Island needs to dip into its reserves to balance the budget.

This year the Isle of Man is suffering a loss of £48m from changes to the VAT sharing agreement.

he government plans to transfer £55m from reserves, despite what it calls 'considerable progress to reduce departmental budgets.'

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