A Budget of Confidence INCOME £1,039.8M Spending £1,037.8M

Personal Tax allowance Isle of Man Child Benefit Rates (£) £25 £22.60 £21.50 2019 £14,000 £20.80 £20.40

2018 £13,250 budg£t £14.90 £14.20 £12,500 £13.75 2017 £13.50

2016 £10,500

£9,500 2015 £0 0 £3,500 £7,000 £10,500 £14,000 2016-2017 2017-2018 2018-2019 2019-2020 2019-20 Rate for 1st or only child £pw rate for additional child(ren) £pw A budget of confidence INCOME £1,039.8m spending £1,037.8m

Fees, charges and employee pension Health & Environment, Food Other income contributions Social Care & Agriculture £132.6m £26.8m £276.7m (+£5.2m) £20.6m (+£1.1m)

Value added tax Other Customs V.A.T and Excise Revenue education, sport Government Grants £287.2m £93.3m and culture and Reserves £118.8m (+£7.3m) £13.4m (+£4.3m) Resident Income Tax Company Tax £198.9m £12.3m

Infrastructure, Home Affairs, including Non-Resident Tax national Insurance including roads, ports, Police, Prison and on social social housing, buses, Probation, and Fire and £19.3m £269.4m trains and trams Rescue Service Chips Cafe S HOP £124.6m (+£5.4m) £38.7m (+£4.4m)

Select Capital projects OPTIC Tax, Benefits and Enterprise, including TT, Financial Governance business support and air Administration and ship registries media Douglas Prom Communities, Glens The Douglas Promenade More investment will be made to (+£0.3m) Refurbishment scheme will step up maintain and improve our glens and £24.6m (+£0.9m) £26.7m a gear over the coming months, with footpaths. more than £10m forecast to be spent on this major capital scheme. fibre optic network

OPTIC A commitment to improve our Wildlife Park communications network will see £2m The Curraghs Wildlife Park is set allocated for spending on fibre-optic Pension Expenditure * Other Government to be redeveloped, with £497,000 connectivity. funded by employee Boards committed to modernising the facility. contributions mayfield, ramsey

@iomgovernment Chips Cafe S HOP Peel east quay £3.8m is committed over the coming £33m (+£1.9m) East Quay in Peel is set to be year to progress Mayfield Sheltered £26.8m (+£2.7m) reconstructed in a major capital project Housing scheme in Ramsey. • Attorney General’s Chambers £5.4m forecast to cost £2.4m. regional sewage works •General Registry £4.9m castle rushen school Work will progress in refurbishing Social Security •Manx National Heritage £5.5m Construction is due to start on a new regional sewage treatment works in Benefits and Payments high school in Castletown, with £2.3m Peel, Laxey and Baldrine, with £3.5m 13 •Legislature £4.9m due to be spent during the next year. committed over the next financial (+£13m) year. £301.9m •Financial Services Authority £6.2m HERITAGE RAILWAYS

13 Investment in the Island’s heritage JURBY DEVELOPMENT •Gambling Supervision Commission railways is set to total £24m over the £1.75m is allocated to the Jurby £1.2m Cabinet Office next five years. Development Initiative, where small •Other Agencies & Boards £4.9m iomgovernment industrial units are planned alongside Highway improvements £48m will be committed over five years housing, community facilities and £32m (no change) to improving roads around the Island. landscaping.

Number of Registered Unemployed people has Capital Budget has been raised to £129m Income Tax over the Past Five Years Fallen from September 2016 to December 2018 129.7M 1000 £250m 116.8M

232.9M 232.7M 800 #iombudget2019 92.6M 88.4M £200m 216.8M 203M 199.5M 73.5M 72.9M 600 £150m 400

£100m 200

0 0 0 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 Sep - 16 DEC- 16 MAr - 17 JUN - 17 Sep - 17 DEC - 17 Mar - 18 JUN - 18 Sep - 18 DEC - 18 (Forecast) FEBRUARY 22-28 2019 BuDGET 2019 Unemployed Unemployed 12 Month Moving Average

Case studies: HOW THIS YEAR’S BUDGET will make a difference

Co-habiting couple with one child aged 15 Single parent with Couple with two one has full-time job, other in two school-age school-age children Couple over State receipt of Child Benefit only. children paying mortgage interest Pension Age paying mortgage interest Income: Income: Income: Income: £20,000 a year £75,000 a year, plus Child Benefit , plus Child Benefit at reduced rate as they earn more than (from pensions Will pay £75.04 less tax/NI over a £45,000 a year £100,000 a year £50,000 and investment income) year, taking home £1.44 more each A £94 increase in Child Benefit will week. The couple’s joint income will help them become £171.24 better Will be £335.44 better off over a Will pay £300 less tax over a year, also increase by £57 a year/£1.10 a off over the year. Weekly take year, taking home £6.92 more each collecting £5.77 more each week. week. week due to the increase in Child home pay will rise by £5.09. Benefit.

Couple with no Single person with Single person, Single person with Single person over children no children Full Feature no children paying mortgage interest and self-employed with State Pension Age mortgage interest of £6,000 a nursing home fees for year no children Income: Income: elderly relative Income: Income: (minimum wage) £15,103 a year £25,000 a year Income: £33,000 a year £18,000 a year Will be better off over a £115.04 Will be £150 better off over a year, £110,000 a year Will be better off over a £194.04 Will pay less tax and year and weekly take home pay will taking home £2.88 more each year, taking home an extra a £75 £29.12 Will be better off £3.66 less NI over a year. rise by £2.21. week. £380.08 week. over a year, taking home £7.30 what it means for you Inside today a week more.

A budget of confidence he Isle of Man’s solid financial foundations and its ability to Tmeet the challenges ahead were the key themes when Treasury Minister Alfred Cannan MHK deliv- ered the Isle of Man Government’s 2019 Budget in Tynwald on Tuesday (19 February). Mr Cannan highlighted a package of measures designed to support working families, to target further job growth, to invest in vital infrastructure and to strengthen frontline public services, with a particular focus on policing and healthcare. LIVERPOOL While acknowledging the ongoing uncertainty around Brexit, Mr Cannan said: ‘We have solid foundations on which we can adapt to meet our challenges. In a year that promises international political and economic turbulence, this Budget provides a platform for confidence in our Island and the future.’ The Minister revealed the Isle of Man Government’s accounts are forecasting a surplus of £28m in OPTIC the current year — representing an increase of £18m on the budgeted amount — and that Treasury’s five- year financial plan designed to re- duce reliance on reserves remains This will mean more than 1,550 take place over the next five years, benefit from an additional £12m, in- This year’s Budget supports on target. people will be lifted out of the aimed at delivering focussed invest- cluding £2.5m to be used to support working families, invests In addition to higher than expected income tax net. ment for the benefit of the Island policing in the community. in vital infrastructure income tax receipts, spending on The cost of the measures will be and its residents. Mr Cannan said: ‘The safety and and strengthening public employment-related welfare support £6.2m and maintains the current Addressing the needs of business, security that we enjoy are precious, services, and introduces has been significantly lower than measures to stimulate job administration’s commitment to Mr Cannan announced a National but we must not take them for growth anticipated, as a result of continued support hardworking families. Insurance Holiday Scheme designed granted. Neighbourhood policing low unemployment and business Above inflation increases are also to attract workers, support firms will be redesigned and modernised, growth. applied to Child Benefit, Employed aiming to recruit employees and with extra officers being provided A total of 439 new taxpayers have Persons’ Allowance, Maternity Pay- increase the working population - a to tackle offending and anti-social been added to the workforce during ments and Disability Premiums. key objective of the current admin- behaviour across the Island. It will the past year, while 73 employers A total of £1.5m has been ring- istration. also provide more effective support have registered with the Income Tax fenced while proposals to help par- Business will also be boosted by to vulnerable people.’ Division. ents supporting children in higher £6m for related support schemes This year’s Budget recognises Referencing the ‘family heartbeat’ education are brought forward. and a commitment to provide £1.5m that the forthcoming Independent of the Isle of Man, support for work- Significant investment will be com- for additional resources to ensure Review into the Isle of Man Health ing families was a prominent theme mitted to improving roads around the Island remains compliant with and Social Care System could result as the Treasury Minister made a the Island and developing our international standards, preserv- in significant changes when Tynwald number of key announcements. telecommunications infrastructure. ing its reputation as a responsible considers the report later this year Personal tax allowance will rise for These form part of a £479 million jurisdiction. and up to £5m has been made availa- the third year in a row, to £14,000. programme of capital funding to Frontline public services will ble for healthcare transformation.

Published by Isle of Man Government www.gov.im Income tax We recognise the receipts are up, importance of employment is providing support to high and investors those who need it, are displaying and disability benefits confidence by will increase above developing hotels, the rate of inflation, at offices and housing 3.4%. Above inflation increases will also projects. apply to Employed Person’s Allowance and Maternity Payments. A budget of confidence Most benefits funded More people will be taken by National Insurance out of the tax bracket payments will rise by with personal income tax 2.4% and the basic allowance increased by a State Pension by 2.6%. further £750, from £13,250 Capital investment projects to deliver lasting legacy to £14,000 per person.

robust capital investment pro- It is due to open late in 2020 and will fibre-optic connectivity. The proposals gramme will bring forward a provide a facility fit for the 21st century will have benefits for residents and This year’s Budget range of schemes for the benefit of to be used by residents and tourists for businesses, as well as encouraging eco- We will be encouraging A aims to help residents for generations to come. many years. nomic diversity. new resident Demonstrating confidence in the The importance of supporting those An extensive highway refurbishment parents who are employees with a Island’s economy and building for the with mental health problems is prom- programme is planned worth £5m and supporting higher National Insurance future, this year’s programme is set at inent in this year’s Budget with £1.5m a further £14m over the next four years. education costs Holiday Scheme to £129.7 million, and totalling almost £479 to be spent on redeveloping the mental In addition to this, improvements worth with £1.5m ring- provide an added million over the next five years. health facility at Grianagh Court and £7.6m are planned to East Quay in Peel fenced to progress proposed changes. incentive for relocation Among the highlights are important £1.7m on adapting a building on the and West Quay in Ramsey and resur- to the Island and investments in transport, education, Noble’s Estate into a new Acute Adult facing the A5 linking Douglas with Isle mental health, telecommunications and Psychiatric In-Patient Facility. of Man Airport and Castletown over support employers infrastructure. The Emergency Services will see the next five years, along with £4m on with their recruitment Bill Shimmins, Treasury Member with life-expired equipment replaced with bridges. Significant programmes. responsibility for Capital Projects, said: new ambulances, fire appliances and These projects, combined with on-go- investment will ‘The programme for the next year and police vehicles to help keep our Island ing commitments, result in an invest- be committed beyond is one which demonstrates this safe. ment of almost £48 million on highway to improving Government’s commitment to modern- The village of Jurby will receive signif- infrastructure until 2023. roads around ising the Island’s infrastructure. It dis- icant investment aimed at stimulating A total of £7.3m will enable the ongoing the Island, plays confidence in our economy, raises growth and improving the environment. replacement of the bus fleet and ensure including a major project to resurface Front-line policing will standards for residents and businesses A total of £1.75m is earmarked for the a modern and efficient public trans- the A5 linking Douglas with Isle of Man receive additional and will leave a robust and lasting legacy project, which will see small industrial port network is maintained, while the Airport and Castletown. assistance to allow for generations to come.’ units created alongside housing, com- heritage rail network and its important Treasury Minister Alfred Cannan MHK, second left, pictured discussing the Budget with Department Members, from left, Bill Shimmins MHK, Bill Henderson MLC and Ralph Peake MHK at Government Offices in Douglas officers to work with A planning application has been sub- munity facilities and landscaping. connection to tourism will benefit from mitted by the Isle of Man Government Provision has been made to allow the an annual consolidated fund of £4.5m. greater visibility in the to build an Isle of Man Ferry Terminal government to invest in the Island’s The Island’s national glens and foot- community. Body-worn former steam railway line between Peel The overall capital programme is one encourage growth and ensure the Island in Liverpool to cement our lifeline sea telecommunications network, with paths will receive further investment, and Douglas, reflecting the Island’s sta- which demonstrates confidence in the cameras are set to continues to be a special place to live We are investing in our link with the North West of England. £2m allocated in the year for improving along with the Heritage Trail on the tus as a UNESCO Biosphere Reserve. future – to build on solid foundations, to and work. become more widely young people and their used with investment in education by starting proven, modern technology solutions. work on a new high school in Castletown. Construction is due to start during the next year, with £2.3m committed to the project.

Maintaining the Island’s unique position as being the This year’s Budget recognises only entire nation that the forthcoming Independent to hold UNESCO Review into the Isle of Man Health Biosphere status and Social Care System could will be given greater result in significant changes and A digital impression of the proposed Isle of Man Ferry Terminal in Liverpool Bill Shimmins MHK visiting the social housing development at Clagh Vane in Ballasalla Work will continue on the £25m redevelopment of Douglas Promenade focus with £250,000 Treasury stand by with a Healthcare funding to assist with the development Transformation Fund of £4.4m. Roadshow gathers people’s views Annual spending per person equates to £12,938 of community projects. he Treasury team went on the road with how well the events went and how in October as part of a new initia- they were received by those who took Total Government spending projected £3,299 for Health and Social Care £1,311 for former Government Ttive to gather views ahead of this part. for 2019-20 equates to around Services, of which £1,253 relates to employee pensions, of which around Developing routes year’s Budget. ‘Speaking to people face-to-face was The importance of £12,938 per head*. This per person Noble’s Hospital, £637 for Primary £320 comes from current employee to accommodate supporting those Residents were invited to attend invaluable in understanding the depth of workshops in Ramsey, Peel, Castletown feeling about certain issues and certainly figure includes: Care, £614 for Social Care Services, contributions Active Travel - with mental health and Douglas, and came out in force to helped to inform and reinforce the way £207 for providing free or subsidised which aims to £461 for the Police, Fire, Prison and problems is prominent discuss what they regard as spending the Budget planning process was taking £1,417 for Education, including prescriptions or drugs, and £231 for increase the other parts of the Department of in this year’s Budget priorities. shape.’ £116 for University Fees treating Manx patients in the United number of journeys with £1.5m to be Home Affairs Treasury Minister Alfred Cannan MHK In addition to the workshops, people Kingdom undertaken by spent on redeveloping was joined by Department Members were able to submit their views to Treas- £161 for Waste Management, in walking and cycling mental health facility Bill Shimmins MHK, Ralph Peake MHK, ury through social media at Facebook £151 for Public Transport and £235 for supporting the Department Bill Henderson MLC and officers at the iomgovernment, Twitter @iomgovern- addition a further £72 raised via within 2.5 miles of Grianagh Court and Heritage Railways of Environment, Food and well-attended events. ment and by using #iombudget2019, by local authorities or business waste Douglas town centre - will be stepped £1.7m on adapting a building on the Agriculture Noble’s Estate into a new Acute Adult Mr Cannan said: ‘Meeting residents email [email protected] and by calling charges up during the next financial year with £3,951 for Social Security payments Psychiatric In-Patient Facility. and finding out what matters to them 685950. £1.6m committed to the project. through the interactive workshops was a Minister Cannan pictured speaking at the such as the State Pension, Income £62 for Sports and Arts, including *Assumes population of 83,874 - Economic new approach, and we were very pleased Budget workshop in Ramsey, October 2018 Support and Child Benefit subsidising local swimming pools Affairs, Cabinet Office (January 2019) Personal Tax allowance Isle of Man Child Benefit Rates (£) £25 £22.60 £21.50 2019 £14,000 £20.80 £20.40

2018 £13,250 budg£t £14.90 £14.20 £12,500 £13.75 2017 £13.50

2016 £10,500

Fees, charges and employee pension Health & Environment, Food Other income contributions Social Care & Agriculture £132.6m £26.8m £276.7m (+£5.2m) £20.6m (+£1.1m)

Infrastructure, Home Affairs, including Non-Resident Tax national Insurance including roads, ports, Police, Prison and social housing, buses, Probation, and Fire and £19.3m £269.4m trains and trams Rescue Service Chips Cafe S HOP £124.6m (+£5.4m) £38.7m (+£4.4m)

Select Capital projects OPTIC Tax, Benefits and Enterprise, including TT, Financial Governance business support and air Administration and ship registries Douglas Prom Communities, Glens The Douglas Promenade More investment will be made to (+£0.3m) Refurbishment scheme will step up maintain and improve our glens and £24.6m (+£0.9m) £26.7m a gear over the coming months, with footpaths. more than £10m forecast to be spent on this major capital scheme. fibre optic network

Chips Cafe S HOP Peel east quay £3.8m is committed over the coming £33m (+£1.9m) East Quay in Peel is set to be year to progress Mayfield Sheltered £26.8m (+£2.7m) reconstructed in a major capital project Housing scheme in Ramsey. • Attorney General’s Chambers £5.4m forecast to cost £2.4m. regional sewage works •General Registry £4.9m castle rushen school Work will progress in refurbishing Social Security •Manx National Heritage £5.5m Construction is due to start on a new regional sewage treatment works in Benefits and Payments high school in Castletown, with £2.3m Peel, Laxey and Baldrine, with £3.5m 13 •Legislature £4.9m due to be spent during the next year. committed over the next financial (+£13m) year. £301.9m •Financial Services Authority £6.2m HERITAGE RAILWAYS

13 Investment in the Island’s heritage JURBY DEVELOPMENT •Gambling Supervision Commission railways is set to total £24m over the £1.75m is allocated to the Jurby £1.2m Cabinet Office next five years. Development Initiative, where small •Other Agencies & Boards £4.9m Highway improvements industrial units are planned alongside £48m will be committed over five years housing, community facilities and £32m (no change) to improving roads around the Island. landscaping.

Number of Registered Unemployed people has Capital Budget has been raised to £129m Income Tax over the Past Five Years Fallen from September 2016 to December 2018 129.7M 1000 £250m 116.8M

232.9M 232.7M 92.6M 800 88.4M £200m 216.8M 203M 199.5M 73.5M 72.9M 600 £150m 400

£100m 200

Case studies: HOW THIS YEAR’S BUDGET will make a difference

Co-habiting couple with one child aged 15 Single parent with Couple with two one has full-time job, other in two school-age school-age children Couple over State receipt of Child Benefit only. children paying mortgage interest Pension Age paying mortgage interest Income: Income: Income: Income: £20,000 a year £75,000 a year, plus Child Benefit , plus Child Benefit at reduced rate as they earn more than (from pensions Will pay £75.04 less taxI over a £45,000 a year £100,000 a year £50,000 and investment income year, taking home £1.44 more each A £94 increase in Child Benefit will week. The couple’s joint income will help them become £171.24 better Will be £335.44 better off over a Will pay £300 less tax over a year, also increase by £57 a year£1.10 a off over the year. Weekly take year, taking home £6.92 more each collecting £5.77 more each week. week. week due to the increase in Child home pay will rise by £5.09. Benefit.

Couple with no Single person with Single person, Single person with Single person over children no children no children State Pension Age paying mortgage interest and mortgage interest of £6,000 a self-employed with nursing home fees for year no children Income: Income: elderly relative Income: Income: minimum wage £15,103 a year £25,000 a year Income: £33,000 a year £18,000 a year Will be better off over a £115.04 Will be £150 better off over a year, £110,000 a year Will be better off over a £194.04 Will pay less tax and year and weekly take home pay will taking home £2.88 more each year, taking home an extra a £75 £29.12 Will be better off £3.66 less I over a year. rise by £2.21. week. £380.08 week. over a year, taking home £7.30 a week more. Funding will be commited to explore creating a joint headquarters for Calling emergency services - a multi-purpose property for 999 Police, Fire and Rescue, and Ambulance. At a glance

More than £5m of An increase for the third consecutive year to the personal income tax allowance, of £750 to £14,000, work is planned to lifting 1,550 people out of the tax net. Taxpayers will be up to £150 better off, or up to £300 better off for take place at Isle of Man Airport to jointly assessed couples. maintain safety and security. Introduction of a National Insurance Holiday Scheme for people who move to the Island for work and Manx students who return to the Island to work after completing their university courses.

Most benefits to rise by 2.4% with exceptions to: We will be providing additional support to the vulnerable by Child Benefit, Basic state increasing the Winter 5.0% building on last 2.6% Bonus, which helps pension people meet winter year’s increase of 3.3% fuel bills, by 16.7% – from £300 to £350 – the first time this allowance has risen for 10 years. Employed Person’s Winter 2.9% Allowance (basic) 16.7% Bonus +£50

Disability Maternity Payment 20% 3.4% Living Allowance Further investment will be made to protect our coastal towns and villages from the effects of climate change through focussed and evidence-based projects. New Manx State Pension to be introduced 6th April 2019 at the full rate of £184.15 a week will apply to new pensioners.

More money to enable departments to deliver services: an additional £3m for Health and Social Care A sugar tax will be services, additional £3m for Home Affairs, mainly within Policing, £2.2m for Infrastructure and £1.5m for imposed on some Education, Sport & Culture. products from April, with the money raised A five-year capital investment programme of £479m, including a Douglas Promenade Walkway, facilitation being used to encourage works to develop the Liverpool Ferry terminal and an initiative to support the development of Jurby, a new better habits and fizzy relieve pressure on the telecoms strategy and a new landfill facility for problematic waste. health service for future drink generations. Revision to the Enterprise Development Scheme to open it to a wider range of applicants. A total of £9.5m will be available to focus on job creation and strengthen the requirement for co-investment.

Funds of £2m set aside from the Economic Development Fund to develop the Airport Technology Gateway A commitment which will see the creation of a high-quality landscaped business park at the airport. to improve our communications Funds of £1.5m ring-fenced for a revised student awards scheme to provide help for parents who are network will see supporting higher education costs. £2m allocated for OPTIC spending on fibre-optic connectivity. Sugar tax to be introduced from April is expected to raise around £300,000 which will be ring-fenced to be used by the Department of Health & Social Care.

Agriculture and Forestry Fund to be topped up with £1m a year for 3 years to support the operation of the Meat Plant, if required. A report from Moody’s Moody’s Investors Investors Service Service report regards the Island as New £250,000 Community Fund to be established to match-fund community projects which support the having high economic UNESCO biosphere status. The Fund will be managed by the Manx Lottery Trust. strength with very high Government financial strength. A top up of £1 million for the Brexit Fund to £2.5m, for the continued negotiations arising from the UK’s departure from the EU.