Treasury minister unveils 'budget of resilience' for 2021

The Island's Treasury Minister has unveiled what he calls a 'budget of resilience' for the next financial year.

Alf Cannan MHK says the 2021 budget is aimed at stabilising the economy, protecting jobs and investing in public services whilst making a platform for recovering from the effects of Covid-19.

It's estimated the pandemic has cost the public purse just over £200million so far - Mr Cannan has told Tynwald today whilst the costs have been significant, being Covid-free has allowed the economy to return to some form of normality.

Mr Cannan told Tynwald members: "The actions we have taken and the costs we have incurred has saved lives, has protected this nation, has protected jobs and the economy, and indeed has protected public finances."

Some welfare benefits are also going up, including 2.5% rises for basic state and Manx state pensions and a 0.5% increase for jobseekers allowance, incapacity benefit, bereavement support and carer's allowance.

It's also been confirmed tax rates will remain unchanged and the National Insurance Holiday Scheme will continue for new employees.

Meanwhile, an extra £18.8million has been allocated to public services, with the largest increase put aside to improve the Island's health and social care services.

Manx Care, the new arms-length organisation taking control of local healthcare services from April 1, is receiving an additional £15million to help it meet higher demand for its services - it will, however, have to deliver efficiences of 1% of its budget in its first year.

Elsewhere, Mr Cannan also announced a new Major Capital Projects Board is being set up to oversee and manage major or complex initiatives.

The Government's Capital Programme has been given another £15million to take the total to £182million for the programme overall - however, the minister says government's focus will be on delivering projects which are already approved.

The minister has also highlighted the £100m Economic Recovery Fund brought in last year, and says funding from this could come to £40million for this year and next.

Approvals so far for it include £1.4million to accelerate the rollout of fibre broadband; £3million to encourage more to take up higher education and £1.75 for the Manx Restart Scheme.

Members of Tynwald will now debate the plans before making a vote on whether to support them.