Isle of Man budget for 2015/16 approved by Tynwald

The budget for 2015/16 was passed by Tynwald after an eight-hour debate

The Manx parliament has approved the island's budget for the next financial year.

Just three MHKs opposed the 2015/16 spending plan, described by Treasury Minister Eddie Teare ass the "most adventurous" in recent years.

Plans to abolish income tax for minimum wage workers on the Isle of Man were announced on Tuesday.

Liberal Vannin leader Kate Beecroft, who voted against, said the government is still "living beyond its means."

Following an eight-hour debate, Tynwald agreed to increase spending next year by £1.6m, or 0.3%, to £545.2m - equivalent to £11,100 per person.

Mr Teare said the government was on track to "balance its books" for the first time since the UK announced changes to its VAT Revenue Sharing Agreement in 2010.

Key budget facts

• About 100 government job losses

• £2m increase in Health Inspection Fund

• 83% rise in carer's allowance

• The island's tax cap will be increased to £125,000

• Free TV licences for the over 75s to end

• 10% rise in income tax paid by companies on income from land and property

• Income thresholds for means-tested entitlement to child benefit reduced

Since then, the Manx treasury said 640 government posts had been cut - about 8% of all staff.

Other budget plans include an 82.7% rise in the carer's allowance from £61.35 to £112.10 per week and the end to universal free TV licences for the over 75s.

The island's tax cap will be be increased by £5,000 to £125,000 for new entrants to the scheme and income thresholds for means-tested entitlement to child benefit reduced by £10,000.

Companies will also see a 10% increase in income tax paid on income from land and property.