Tynwald approves extra £46.8m in overspending

Overspends have been largely blamed on energy costs and pay awards

Tynwald has agreed to free up an additional £46.8m to cover departmental overspending in the current financial year.

The extra spending covered five departments, with the bulk of the money required for the Department of Health and Social Care (DHSC), which is set to the end the year £30m over budget.

Much of the additional funding needed has been put down increased energy costs and pay awards.

Treasury Minister Alex Allinson said all departments had faced "significant funding pressures".

Other overspends recorded for the 2023-24 financial year were £8.9m by the Department of Education, Sport and Culture (Desc), £5.6m by Department of Infrastructure (DOI), and £2.2m by the Department of Home Affairs (DHA).

'Under-provision'

DHSC Minister Lawrie Hooper said the department had been historically underfunded, with "continuing under-provision within successive budgets failing to recognise the level of demand".

He said one of the largest cost pressures was the £7.3m extra required to meet pay awards, while drug costs had risen by 24% in some areas, he said.

Mr Hooper said "inflationary pressures" had led to £4.2m in the increased cost of contracted services and an "unexpected" rise in people needing specialist treatment in the UK meant a £3.3m overspend in tertiary services.

It was also the first year the department absorbed Covid-related costs of £2m, no longer covered by the contingency fund, he said.

Mr Hooper said there were pressures on new services and service enhancements

In Home Affairs, Minister Jane Poole-Wilson said on top of inflation in pay awards , an "underachievement of our income targets", and "one-off event incidents", utilities and energy costs had accounted for a third of its overspend.

Speaking before being removed as minister, Julie Edge said the significant impact posed by energy cost pressures had contributed to Desc coming in over budget, along with pay awards of 6% in 2023 leading to increased costs of £6.4m.

There had also been a rise in the number of children requiring "specialist provision centres and placements", which required additional staffing, she said.

Infrastructure Minister Tim Crookall said electricity prices and employee cost pressures at Bus Vannin were key issues facing the department, however a strategic review of bus services was underway.

The "escalating cost of air traffic control" meant there were also employee cost pressures at the airport, he said.

Dr Allinson said the supplementary votes could be "balanced" by an increase in income tax receipts, which were "expected to be much higher than budgeted", and would lead to a reduced need for money from reserves for the year.