Well what a day it was, the budget passed, eight MHKs rebelled and were dubbed an “unholy alliance”, tax thresholds were increased and just about everyone got on their soapbox in this election year Budget.
Just incase you are a normal person who doesn’t spend their lives listening to Tynwald, here are the key details and three of the highlights from the debate:
Taxes
The Great Election Giveaway was indeed the much expected tax threshold increases.
Personal tax allowance:
- Will increase by £2,250 for individuals and £4,500 for jointly-assessed couples
- Will rise to £17,000 for individuals and £34,000 for jointly-assessed couples
- The changes mean that the higher rate of income tax will become payable on income over £23,500 and will lift around 3,600 taxpayers out of the tax net
The permitted maximum tax deduction for nursing expenses will increase from £12,500 to £15,000. There’ll be more help for people who provide TT Homestay this year as the tax allowance will rise from £2,350 to £2,500.
Manx Care
Everyone and their dog had a go at Manx Care’s spending record yet again.
An extra £45m in additional funding will be available to the Department of Health and Social Care to fund improvements in our NHS, including reducing waiting times, embedding early intervention initiatives and improving care for older adults.
However, a £10m contingency will be in the hands of Treasury, ensuring the DHSC can’t just hand it over.
Benefits
Most benefits will increase in line with inflation at September 2025 – reciprocal benefits with the UK by 3.8% (UK CPI) and all others by 2.9% (Isle of Man CPI).
Pensioners will continue to benefit from the Triple Lock commitment and will see an increase of 4.8% in their pensions. The Basic State Pension will increase to £184.90 a week and the Manx State Pension to £263.55 a week.
Debate
Many good highlights, but we have a top three, albeit while cheating with giving Lawrie Hooper two.
Chief Minister Alf Cannan was in good form as he came into bat second after Mr Thomas, delivering this line: “There is no Shylock here, Mr President, just Sherlock. If you invest in people, if you cut taxes, if you put money back into working people and families, you increase the value of the economy.”
Dr Michelle Haywood was keen to slam the budget for everything it was worth and likened the Chief Minister to PT Barnum.
“The ring master will no doubt raise his voice and, like PT Barnum in full flow, direct you to look at the headlines, marvel at his generosity, be dazzled by the bright lights and the sequins.”
Lawrie Hooper surprised everyone by invoking Margaret Thatcher: “Mr Cannan had a bit of a paddy the other week when he blamed all the ills of his government on shrill socialists ruining the country.
“Thatcher said the problem with socialism is you eventually run out of other people’s money and she may as well have been talking about this Treasury when she said it because in this budget, the Council of Ministers are happily spending other people’s money without a care in the world and no idea how they’ll pay the bill.”
However, his best line, which he was made to withdraw, was this: “The Honourable Member for Douglas Central was probably the first Treasury minister for the modern age, to be able to confidently assert that he has screwed 1000s of women across the island.”
Mr Hooper then withdrew it, saying he wouldn’t want his word to be misinterpreted (as if).
There were many other very good speeches and inputs to the debate, which you can find in full on the Tynwald website if you so wish, either way, it passed and we can all get on with our lives.
You can hear Charlie’s interview with Chris Thomas below: