Tax thresholds review part of government refocus

The chief minister outlined a series of pledges during the June sitting of Tynwald

Tax thresholds on the Isle of Man are set to be reviewed in response to increasing public service costs, including the rises in health care, the chief minister has said.

Alfred Cannan said "maintaining the status quo" would lead to "an unacceptable demand" on reserves without changes to spending or taxation.

The government would also examine the "transparency" of ferry fares and conduct a review of the of the public sector headcount, he said.

Mr Cannan said after the "tumultuous events" of the first three years of the administration it was now "an appropriate time to refocus".

In a statement to members, he outlined progress made on waiting lists, housing and range of investment in support for young people, including a recent £3.4m boost to child mental health services.

But Mr Cannan said "growing pressures" on budgets, driven by increasing costs within the public sector "underpinned by the burgeoning growth" of health care as demographics change, had to be tackled.

Promising an update on the review of tax thresholds in October, he said the government was committed to being a low tax economy, while ensuring public services benefited society and did not "leave people behind".

The chief minister said a new "grip" of headcount, set to see Manx Care personnel figures reported separately, would ensure a more "specific and detailed" outline of the number of workers in the public sector.

However, Julie Edge MHK said a further efficiencies review of the operations of government departments, to be reported on by November, was needed instead.

Alfred Cannan said ferry fares were a matter of public concern

Mr Cannan also said the Council of Ministers would work with with the Isle of Man Steam Packet Company during the summer months to "examine options to bring greater transparency to pricing".

He said transport costs were a "matter of public concern", especially for those who had to travel at short notice, but gave assurances the investigation would not "undermine" a Tynwald committee's current consideration of the Sea Services Agreement.

However Michelle Haywood, a member of that committee, said that move could signify a "clear admission" the arms-length model of the government-owned ferry firm uses was not working.

Mr Cannan said after the "tumultuous events" of the Rosalind Ranson employment tribunal, a cost of living crisis and the pandemic it was now time to refocus.