Isle of Man News - POSTED Mon 26-10-2009

'Mindsets must change' following 'VAT bombshell'

by Manx Radio

'Mindsets must change' following 'VAT bombshell'

A senior Isle of Man accountant says Treasury is making the right moves to shore up confidence in the Manx economy around the world.

The restructuring of the Island's VAT sharing arrangement with the United Kingdom has dealt a serious blow to the government's finances, with the Treasury minister warning very difficult decisions are necessary to bridge the gap.

Managing director of PKF Isle of Man Philip Dearden says the public and government departments have got used to high levels of service and spending.

The loss of up to £90 million a year from next year, and £140 million annual thereafter, means mindsets will have to change, and quickly:

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