The government has failed to block a series of major changes to the way the island’s budget is put together after Tynwald members voted to approve almost all 25 recommendations from a select committee report.
After a long debate, members backed reforms including a six-week minimum period between publication of the budget and voting, the ability for members to table amendments, and greater parliamentary scrutiny of public spending.
The Council of Ministers had sought to refer many of the recommendations for further consideration until at least March 2027, arguing they raised “fundamental structural and constitutional questions” about the balance between executive and legislature.
But Tynwald rejected the government’s approach, with the amendments from Chief Minister Alf Cannan falling on most recommendations.
Discontent
Dr Alex Allinson, who moved the report, said the changes would address growing discontent with the current process.
“Over the last 10 years, a combined total of 52 Tynwald members have voted against the annual budget,” he told the court.
“The lack of time to scrutinise the Pink Book effectively, and what has been termed a ‘take it or leave it’ approach to the entire financial package has been criticised by many members.”
The committee took evidence over more than a year and included two former Treasury ministers, the current Treasury Minister, and the chair of the Public Accounts Committee.
Amendment powers
Recommendation nine, which introduces the ability for members to make amendments to the budget, was carried after being amended by Lawrie Hooper to require Treasury to publish the assumptions and sensitivity assessments behind any costings.
Mr Hooper said he was concerned about potential misuse of costing assumptions.
“You run the risk that if it’s a particular policy that, say, the Treasury doesn’t want to introduce, they could use particularly unfavourable assumptions, which then we wouldn’t know about,” he said.
“I think all the relevant information needs to be shared with members and with the public as to the effect of some of those proposed changes.”
Dr Michelle Haywood, seconding Mr Hooper’s amendment, said the report reflected what the public would reasonably expect.
“It cannot be right that members receive a budget with such limited time to scrutinise it, with no meaningful opportunity to engage with constituents or examine the underlying assumptions in depth,” she said.
Rejected amendments
The government’s amendment to delay consideration of key recommendations until 2027 was also defeated, with members instead backing the committee’s proposals for earlier publication, greater transparency, and enhanced scrutiny powers.
Tim Glover accused the Council of Ministers of defending the status quo.
“This response asks us to be patient, but we have been patient. It asks us to be cautious, but caution must not become complacency,” he said.
“Reform delayed is too often reform denied.”
Divided response
Speaker Juan Watterson, who said he has campaigned for budget reform for two decades, expressed disappointment at the government’s initial response.
“Turkeys, it seems, have a very poor record of voting for Christmas, and it is only with the concerted will for transparency from members of this court that anything will ever change,” he said.
“I hope that today is that day.”
Stability
However, Treasury Minister Chris Thomas urged caution, warning that the changes could affect the island’s financial stability.
“We’ve had 40 years of fiscal stability, we’ve got a very good rating, that’s precious to the economy of the Isle of Man,” he said.
He also defended the government’s position on the need for further consideration.
“We need to make great care… because matters of the budget are of strategic national importance, and that’s the absolute heart of this.”
Jane Poole-Wilson, DHA Minister, said fundamental building blocks needed improvement before further changes were made, including better data and management information.
“Until we really understand what it is we have to do, how we are going to do it, and what that costs, it is much harder for us to have a debate,” she said.
Carried reforms
Recommendations carried include formal documentation of the budget process with a clear calendar, greater involvement of policy review committees, publication of business cases submitted to Treasury, and Tynwald approval for government debt commitments over £5m.
Recommendation 12, which would have required all business cases to be published when submitted, was defeated following concerns about proportionality, while recommendation 14, which grants expanded quarterly financial reports to include divisional-level income and expenditure and key risks analysis, was carried despite not being supported by government.
The recommendations requiring publication of business cases when submitted to Treasury were also defeated, with Mr Hooper arguing they went too far.
“Not all business cases come to Tynwald, not all of them go through the Treasury and come out the other side and are then subject to Tynwald’s approval,” he said.
The motion as a whole was carried, with 18 votes for and four against in the House of Keys, and all six Legislative Council members in favour.
