Treasury Minister responds to UK Autumn Statement
Wednesday 30 November 2011
Treasury Minister Eddie Teare MHK gave his initial reaction to the UK Autumn Statement today (Wednesday, November 30).
The Minister said: ‘It is clear from yesterday’s Autumn Statement that the UK and the Isle of Man will continue to face tight financial times over the next few years.’
He added: ‘The UK have announced that the 3p rise in fuel duty due in January 2012 will be postponed until August, and that the additional 2p rise in duty due next August will be abolished. Whilst this will benefit local motorists by around £1.9million over the 15 months from January 2012, it does present a further challenge to the Government as we strive to rebalance the Island’s budget. We estimate the cost of this to the Treasury will be around £1.3million next year.’
‘The UK’s proposals for pay and pensions reinforce the need for these costs to be controlled going forward. Local public sector employee groups linked to UK pay and pension arrangements will of course be interested in the proposals set out by the Chancellor.’
The Minister noted that longer term changes to the State Pension and the merging of Tax and National Insurance could impact on the Island and he would be studying these details with his officers in due course.
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