Treasury minister delivers Budget speech

Treasury Minister David Ashford delivered his 2022 Budget in Tynwald today.

It's his first Budget speech to Tynwald - the first as Treasury Minister and the first of the new administration.

The Budget for the forthcoming financial year involves a capital spending commitment of £174 million.

Maintaining economic strength, enabling growth, supporting working families and protecting the vulnerable were the key themes outlined by the Minister.

He provided members with an update which included a five-year financial programme - with government revenue spending for 2022/23 budgeted at £1.15 billion.

Some key points included:

• The personal tax allowance has been raised by £250 to £14,500 for an individual and by £500 to £29,000 for jointly-assessed couples.
• Tax rates and other allowances remain unchanged 
• Targeted increases have also been made to benefits and allowances for parents, carers, pensioners and people with disabilities.
• Deficit forecast of the 2021/22 financial year is £36.3m - result of extra costs throughout the pandemic e.g. PPE and business support.
• An overall deficit position is forecast to turn a surplus by the end of 2024-205.
• No changes to Class 1, Class 2 or Class 4 NIC rates 2022-23
• Government income is expected to return to pre-pandemic levels by 2024-25.
• The rate of a Manx state pension is to increase by 3.1%, from week commencing 11 April, the full rate will go from £196.14 to £202.23 per week.
• Rates of the pension top up also increases by 3.1%.
• A £25 million Climate Change Fund has been created to help move the Island towards its target of reaching net-zero emissions by 2050.
• A £2m fund has been created to support the work of the newly-created Housing and Communities Board. 
• The Department of Health and Social Care (DHSC) will be provided with an additional £8.25m to fund Manx Care and will have access to a further £5.08m of contigency funding to address cost pressures which may arise during the next year. 
• Mr Ashford revealed providing ongoing support in relation to the pandemic has cost around £24 million.
• Climate change and environmental protection will see £9m allocated to focus on measures to support climate change adaptations, while a further £5m is available to mitigate the impact of environmental damage. 
• TT Homestay concession will become an income tax allowance - with the tax-free amount increasing to £2,350.
• A five-year capital investment programme of £485.3 million includes a dedicated Sexual Assault Referral Centre, funding for the continued roll out of the fibre optic network, completion of the Balthane Gateway, an upgrade to King Edward Pier and improvements to visitor facilities at the Sea Terminal.

However, Mr Ashford admitted meeting the 'required growth funding' for health and care services will be achieved by using a proportion of investment income generated by the Manx National Insurance Fund.

He said he understands people will be concerned by this but added he feels 'it's appropriate' to take what 'in effect, is a very small sum' to invest it in our health and care services, adding it is a 'one-off withdrawal'.

Investment will be channeled into a range of schemes - including projects to improve the Island's main passenger ports, a Sexual ASsault Referral Centre and help for local emergency Services.

Mr Ashford outlined Key rises in the following benefits:

• Pensioners - Basic state pension (3.1%)
• Child Benefit (5.0%) Employed Person's Allowance - basic allowances and for children (5.0%) - this will benefit 6,500 familiies.
• Disability - Carer's Allowance up 15% - around 550 carers will benefit from this.
• Disability Living Allowance (5.0% generally) - The rates of attendance allowance and disability living allowance will help 4,000 disabled people.
• Income Support Carer Premium (26.4%) -  The increase in Carer's Allowance will benefit around 500 carers.
• Income Support Disbaility and Disabed Child Premiums (5.0%)
• Nursing Care Contribution (3.1%)
• £16.68m new services and growth funding to Manx Care - including developing the 111 service and support areas of long COVID/ME, palliative care and the air ambulance service.
• £2.74 million enable the DESC to increase additional educational needs provision.
• £1.2 million allocated to Department for Enterprise's Motorsport Division to support the return of the TT and MGP.
• £314,000 will allow the Department of Home Affairs to meet the running costs of the Sexual Assault Referral Centre.