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Manx Teachers and Police Officers Could Be Subject To Pay Freeze

UK Emergency Budget Announces Pay Freeze For Some Workers

The Isle of Man Government are set to benefit from the increase in VAT that was announced in yesterdays UK emergency budget.

The VAT increase to 20% was announced by UK Chancellor George Osborne.

In it's first full year, the Island would receive an extra £25million pounds due to the sharing agreement, however it could mean people will spend less money.

The hike comes into effect from January 4th.

Another announcement in the budget was a pay freeze for public sector workers which would affect some Island residents. Teachers and police officers contracts are governed by the UK, so they could be subject to a two year pay freeze to be in line with what happens in the UK, as the Treasury Minister explains. (audio above).

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