Budget 2012 - An overview

There have been no major outcomes delivered thus far, with tax remaining largely unaltered.

The income tax standard and higher rates remain unchanged at 10 and 20% respectively.

There has been a new National Insurance Rebate Scheme introduced to pay the employment costs of firms taking on additional employees, in an effort to stimulate more job opportunities.

Tax relief on maintenance payments has been removed and is no longer classed as taxable income.

In total, the 2012 Budget equates to £10,600 spending for every man, woman and child in the Isle of Man. 28.9% of this goes on state benefits, 7.5% on social care, with 10.8% spent on education.

With regards to Departments it is Economic Development that have incurred the biggest budget cut, with £5.6m removed from their finances, this is attributed to the Department performing well and generating the most income independently.

Speaking to 3FM yesterday Eddie Teare conceded job cuts would be a likelihood, with 345 posts to be cut in the next three years, it is hoped the majority of these will come from natural wastage.

There have been changes made to the benefit system, with child benefit reduced to UK levels for second and subsequent children, this works out at £7 per week per child.

Retirement pensions has increased by 5.2% with Nursing Care contribution boosted from £60, to £100 per week.

If the Treasury's plan works then the books will be rebalanced by 2015-16 with £92m needing to have come out of the government's significant reserve pot.

We will have a better idea of where the cuts will be made in each individual Department later on today

(AUDIO ABOVE - Eddie Teare)