A Douglas Central MHK has given a guarded welcome to the Treasury Minister’s budget, while questioning whether the centrepiece tax cut is sustainable.
Ann Corlett told members that she had supported budgets in previous years, although “not always wholeheartedly”. She repeated concerns first raised in 2024 about the budgetary deficit and reliance on reserves.
The headline measure in this year’s budget is an increase in the personal allowance, which Mrs Corlett acknowledged has positives.
“Increasing the amount of money in people’s pockets allows them to spend it where and how they choose, and that’s a much better way forward than the suggested plans for business support to combat the initially supported minimum wage increase,” she said.
However, she cautioned against expectations that the move would transform the hospitality sector’s fortunes.
“Any thought that everyone will be able to go out regularly and give a boost to the hospitality industry is just not realistic.”
Election
Mrs Corlett noted the timing of the tax giveaway, saying: “Of course, we all understand why a big tax giveaway is proposed during election year.”
She questioned the affordability after years of spending restraint and asked Treasury Minister Dr Alex Allinson for assurance he had “got this right”.
“This is a vote catcher, or is it sustainable?” she asked.
While supporting an increase in personal allowance, she expressed doubt about the scale of the rise.
“It’s all very well ringing in the changes, but we must not end up wringing our hands,” Mrs Corlett said.