Budget 2022 at a glance

Sarah Maltby, David Ashworth and Andrew Smith
  • An increase to the personal income tax allowance of £250 to £14,500 will lift approximately 300 people out of the tax net and reduce income tax by up to £50 for individuals and £100 for jointly-assessed couples.
  • Key rises in the following benefits:
  • Pensioners

Basic state pension (3.1%)

Additional pension – ‘SERPS’ (3.1%)

Manx State Pension – up to full amount (3.1%)

Manx State Pension – protected amounts (3.1%)

  • Family/Other

Child Benefit (5.0%) 

Employed Person’s Allowance – basic allowances and allowances for children (5.0%)

  • Disability

Carer’s Allowance (15.0%)

Attendance Allowance (5.0%) 

Disability Living Allowance (5.0% generally, 3.1% for higher rate mobility component)

Income Support Carer Premium (26.4%)

Income Support Disability and Disabled Child Premiums (5.0%)

Nursing Care Contribution (3.1%)

  • The increase in Carer’s Allowance will benefit around 550 carers.
  • Around 19,000 pensioners will see their State Pension increased by 3.1%.
  • Approximately 3,300 individual and families on low incomes will benefit from increases in Income Support and Jobseeker’s Allowance.
  • £42 million of new funding is allocated to climate change across both revenue and capital budgets.
  • A total of £16.68 million has been allocated within the Budget in relation to new services and growth funding to Manx Care, including developing the 111 service and supporting services in the areas of long COVID/ME, palliative care and the air ambulance service.
  • An additional £2.74 million will enable the Department of Education, Sport and Culture to increase Additional Educational Needs provision.
  • £1.2 million has been allocated to the 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.
  • 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.
  • Further funds of £10 million have been allocated to the Economic Fund to continue to support the Island’s recovery from the pandemic.
  • A new Housing and Communities Fund has been established with a balance of £2 million to support the work of the Housing and Communities Board.
  • The Healthcare Transformation Fund will be topped up by a further £7 million to support the ongoing implementation of recommendations from the Sir Jonathan Michael report.
  • The TT Homestay concession will become an income tax allowance, with the tax-free amount increasing to £2,350.
Bill Henderson

Spending equates to £14,044 per person

Total Government gross spending projected for 2022-23 equates to around £14,044 per head for every member of the Island’s population, including children.

This per person figure includes:

  • £4,214 for Social Security payments such as the State Pension, Income Support and Child Benefit and allocation of National Insurance funds towards the NHS
  • £3,559 for Health and Social Care Services, of which £1,406 relates to Nobles Hospital, £872 for Primary Care, £564 for Social Care Services, £199 for providing free or subsidised prescriptions or drugs and £237 for treating Manx patients in the United Kingdom
  • £1,455 for Education, including £128 for University Fees
  • £1,384 for former Government employee pensions, of which around £401 comes from current employee contributions
  • £450 for the Police, Fire, Prison and other parts of the Department of Home Affairs
  • £239 for supporting the Department of Environment, Food and Agriculture, including the Office of Fair Trading and the Road Transport Licencing Committee
  • £121 Net expenditure (after income) for Public Transport and Heritage Railways
  • £83 for Sports, Recreation and Youth Services, including subsidising regional swimming pools

Capital programme sets firm base for Island Plan

A five-year capital programme set at £485.3 million will provide a firm base for Isle of Man Government departments to fulfil the aims of Our Island Plan.

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

Investment will be channelled into a range of schemes which are categorised within the Pink Book against each of the core themes: 

  • Building great communities
  • An Island of health and wellbeing
  • A strong and diverse economy
  • An environment we can be proud of
  • Outstanding lifelong learning and development opportunities for all

Among them are projects to improve the Island’s main passenger ports, its systems and visitor experience. 

Schemes aimed at enhancing passenger facilities at the Sea Terminal and catering for international arrivals at Isle of Man Airport will receive £3m over the next two years. Security is addressed through the development of a passports and immigration system, enabling a multi-agency approach to passenger data.

Protection for the Island’s community will be improved through a £1m investment in a purpose-built Sexual Assault Referral Centre. The scheme will be led by the Department of Home Affairs and supported through a revenue funding commitment to ensure recurring costs can be covered. 

Emergency services will receive further investment through a firefighting water storage unit in Jurby and the vehicle and equipment replacement programmes for both the Isle of Man Constabulary and Isle of Man Fire and Rescue Service.

Climate change and environmental protection will see significant capital investment – £9m is allocated to focussing on measures to support climate change adaptations and the aim of reaching net-zero carbon emissions by 2050 while a further £5m is available to mitigate the impact of environmental damage.

Minister Ashford said: ‘In preparing this budget, I have been mindful that we must continue to invest in our Island’s future. We must find ways to afford to invest in new services and infrastructure to maintain and improve the quality of life here on our Island that we all value so much.’

Analysis to pave way for changes to capital process

Minister Ashford announced an overhaul of the way the capital programme is established and funded, aimed at streamlining and modernising this element of the Budget process.

This will be achieved during a period of transition which will be used to assess how the Government’s property assets are used and maintained, and how the accounting process behind it can be simplified.

Minister Ashford said: ‘Work to deliver a Strategic Infrastructure Needs Analysis (SINA) is ongoing and, while it has not been completed in time for this budget, it is planned to inform a new long-term capital programme that will be brought forward as part of the 2023/24 Budget.’

While still being developed, the SINA is already sharpening the Treasury’s focus on capital investment.

Its aim is to examine all Isle of Man Government assets – land and property essentially, including vital infrastructure such as harbours and sea defences – and identify an effective maintenance programme.

Once completed, the project will allow a full understanding of Government’s asset management commitments over the next 10 to 20 years and enable improved forecasting and financial planning.

The immediate impact of the SINA can be seen in this year’s Budget through the removal of most ‘future years’ schemes and those that have not yet commenced. They will be picked up separately and will only appear in the Budget when they require funding.

The SINA is due to be completed this year and represents a valuable opportunity to fully review the capital programme to ensure it meets the identified Government priorities and strategic needs, but is also affordable within Government resources.

In this year’s Budget, the Treasury has been allocated £200k for 2022-23 and then a recurring sum of £100k to finance a comprehensive programme of surveys of Government buildings, which will inform the SINA.