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Tynwald approves Manx Budget, just three vote against it

by isleofman.com 17th February 2015
The Manx Budget for 2015/16 has been approved by Tynwald.
The vote was taken at around 7pm, more than eight hours after Treasury Minister Eddie Teare got to his feet to begin his budget speech.
In the end, just three Tynwald members - MHKs Kate Beecroft, Brenda Cannell and Peter Karran - voted against it.
During his speech, Mr Teare acknowledged the deep cuts in public spending, loss of services, extra charges and staff reductions have caused pain.
But he said a leaner, more efficient government has emerged.
On the plus side there will be a near doubling of allowance for the Island's full-time carers.
But there's a squeeze on child benefit, with means testing is on the way for families with an income of ?50,000 or more.
Mr Teare has used this budget to outline plans for 2016: he's proposing to abolish the 10% lower rate of tax and raise personal tax allowance to ?14,000.
It's a move he says will lift 10,000 low-paid workers out of the income tax net altogether.
That is subject to a public consultation and Tynwald approval.
Spending overall is due to rise by just ?1.6m, or 0.3%.
Departmental budgets show little movement year-on-year.
An increase of ?3.6m for Treasury is largely accounted for by the creation of a new Central Government Contingency Fund to absorb unexpected and unbudgeted events - financial and physical risks, from inflation to flooding.
The biggest department, Health and Social Care, will lose ?3.4m from its ?181m annual budget, but that figure excludes ?2m set aside to fund recommendations stemming from the current health service review.
Mr Teare's described this year's rebalancing as Phase One of a larger plan to control public finances, and ensure the Island lives within its means.
Phase Two aims to replenish reserves - now depleted after bridging the VAT black hole.
Plans for achieving that are yet to come - but it will mean further belt-tightening and more pain.
During the debate, the budget process itself has been criticised by LibVann leader Kate Beecroft - who's argued consistently in recent years for longer-term spending plans and an end to annual bidding by departments for their budgets.
Michael MHK Alfred Cannan branded as a ‘myth’ government claims the books had been rebalanced, as other liabilities including public sector pensions continue to gnaw at reserves.
According to his calculations, it's to the tune of ?77 million in the forthcoming financial year.
Posted by isleofman.com
Tuesday 17th, February 2015 07:30pm.

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