On the eve of the 2025 Budget, let’s take a look back at the 2024 Budget that left many Manx residents displeased.
The 2024 Budget’s show stopper was undoubtably the rise in income tax, along with the freezing of thresholds.
Last year, Treasury Minister Alex Allinson delivered the news that the higher rate of income tax was increasing to 22%.
Tax Increases
The tax increase was forecast to bring in an extra £20 million, which was to be ring fenced for health care.
The higher taxes came as the personal allowance were frozen at £14,500 for individuals or £29,000 for jointly assessed couples.
The misery for workers didn’t end with tax rises, as National Insurance (NI) contributions also went up.
- Class 1 and the lower profit limit for Class 4 increased by 10% to £160 per week;
- The upper earnings limit for Class 1 and the upper profits limit for Class 4 NI increased by 8.5% to £938 per week;
- Class 2 and 3 contribution rates were increased by 8.5% to £6.20 and £18.95 respectively.
Benefits Increased
Most benefits and handouts went up by 6.7% or 5.7% with an extra £29.3 million of handouts being made to those on benefits.
EPA, Income Support and Jobseekers allowance increased by 5.7%
For those in receipt of state pensions, an extra £18.83 each week was made available.
Maternity allowance standard rate went up from £182.90 to £210.35.
Child Benefit increased for parents who have more than one child by £12.05 per week and those with three children received an extra £22.60 per week.
Look Back
There was no let up in Government spending when the Treasury Minister committed more budget to Health, Education and Infrastructure.
The Department for Health received an additional £41.2 million taking its budget to almost £300 million at £294,978,000.
Whilst the DESC saw a rise of £18 million to £141 million, DoI saw an uplift of £7.2 million.
DfE received an extra £1.3 million, Home Affairs £4.2 million more and Cabinet Office was handed an extra £4.6 million.
Finally, the Department for Environment, Food and Agriculture received £1.3 million more.
The Government planned on using £98 million of reserves to prop up the 2024/25 budget year.
This was in addition to the £126.5 million drawn down in the 2023/2024 financial year.
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