Treasury Minister Dr Alex Allinson MHK today reiterated his pledge, made earlier this month, to mirror the UK Government’s approach to the pensions triple lock.
The announcement follows the delivery of the Autumn Statement and UK Chancellor Jeremy Hunt’s commitment to increase the full new state pension by 8.5%.
Minister Allinson said:
‘Today’s news was not unexpected and I look forward to working with officers and building the triple lock commitment into next year’s Budget. Work has already taken place to support Manx pensioners as we plan for the forthcoming financial year with further announcements being announced in the Budget at the February sitting of Tynwald.’
‘In relation to the changes to National Insurance paid by the self-employed — these will need to be considered in light of the Social Security agreement the Isle of Man has with the UK. Officers will be engaging on this issue with UK counterparts, following which I will be in a position to provide an update on what Treasury's position will be concerning the possible application of these changes to the Island.’
In accordance with the Autumn Statement, the Isle of Man will increase duty rates for tobacco products from 6pm this evening (22 November 2023).
The rates of most tobacco products will increase by Retail Price Index (RPI, UK) plus 2%, with the rate for hand-rolling tobacco increasing by RPI (UK) plus 12%. Alcohol duty rates will be frozen until 1 August 2024.
The UK Chancellor also announced changes to the VAT applied to the installation of energy-saving materials, to be implemented in February 2024, and the extension of the zero rate of VAT to women’s sanitary productions from 1 January 2024.
The Isle of Man Government will replicate these VAT changes with details being posted on the Customs and Excise website in due course.
Minister Allinson added:
‘In terms of the wider UK economy, I note with interest the Chancellor identifying opportunities and committing funds for investment across a range of sectors. On a local level, the Economic Strategy and associated funds are playing a vital role in providing a framework for growth to support future generations. We are also starting to see movement on brownfield sites by private sector companies incentivised by the Island Infrastructure Scheme.’