UK Chancellor cuts Isle of Man budget by 24%
(The Guardian): Alistair Darling, the chancellor, has cut the Isle of Man’s budget by 24% in a dramatic move that could threaten the tax haven’s economic viability. The Treasury confirmed that it had slashed £140m off the Isle of Man’s £572m annual budget by sharply reducing a 400-year-old customs revenue-sharing agreement. Treasury officials acted to rein in the Irish Sea island when it became apparent the UK was, in effect, subsidising it heavily through the customs agreement. The government informed the Isle of Man’s leaders of its intention to slash the subsidy four weeks ago.
Category: Business
Uh oh! With such a massive cut, will they:
a) decrease public services, thereby upsetting the civil service and public recipients of that service, or,
b) institute increased/new fees and/or taxation in order to not decrease said public services
Sounds like we’re all in the same predicament. It will be interesting to see what path they take, and whether we might pick up extra business that they could very well lose.
IOM’s Chief Minister:
We have advised our civil servants that we do not intend to apply any increase to salaries this year, i.e. a zero increase, and this will also apply to ministers and members of Tynwald.
‘We recognise that many companies across the Island have found themselves in a very similar position this year and we believe it is only right and proper that the public sector exercises the same level of pay restraint where possible.
‘Our aim is to reduce our costs but not our services.’
IOM will thrive. They won’t call it an UK conspiracy theory, they won’t think they’ve been unfairly singled out and sulk, they won’t point fingers and lay blame on everyone they can think of, they’ll get their heads down, work together, they’ll be proactive and co-operative and they will make it through.
No problem – they spend wisely in IOM and have a healthy and growing online gaming industry and a significant budget surplus.
More info on that online gaming industry please.
Bracker Dan – as requested. I think we should do the same – perhaps even based in the Brac.
CNS: Just the link please, Anonymous.
Sorry CNS – http://www.iomtoday.co.im/isle-of-man-business/Online-gaming-firms-boost-Manx.4884914.jp
and i thought it was only the natives from the hot climate territories that the UK did this sort of thing to.
Probably a beleif based upon your misguided paranoia.
Desperation.?? What will they think of next????
Maybe they will close some Pubs as a money saving measure.
Take the Brits Beer. Thats why we have so much problems. We eat and drink too much.