THE Island's Treasury Minister has said securing employment levels is the key to the Island's continued economic success.
Earlier today (February 21) Eddie Teare MHK presented the Budget for 2012/2013 to Tynwald.
Mr Teare said he had aimed to "strike a fair balance" by introducing a number of measures to continue to rebuild the Island's public finances.
He said: "The financial facts speak for themselves so my objective in compiling this year's budget has been to be fair.
"Fair to the taxpayer who expects us not just to put up charges to deal with government's problems but to be more efficient. Fair to the person on average earnings who does not utilise to the same level the generous levels of tax reliefs that some have come to enjoy and most of all fair to those on low and fixed incomes who need our assistance but not to a point where they can earn more on benefits than they would get in work."
Some of the measures Mr Teare has introduced include -
- National Insurance payment "holidays" for employers taking on additional staff, such as NEETs, the long term unemployed, Manx graduates and ex public sector workers.
- Benefits for unemployed under 25s reduced to encourage them into work.
- Personal Allowance Credit for those on low incomes reduced from £700 to £500 to ensure that payment is not a disincentive to taking employment.
- Child benefit payment for second and subsequent children reduced from £20.40 to £13.50 per week in line with the UK with compensating benefit increases for those on lowest incomes. According to the Treasury this signals a move away from a universal to a more targeted approach to benefits.
Mr Teare continued: "I believe those who can work should. For their own benefit, for the wider benefit of society and of course government revenues.
"We are fortunate to have retained near full employment at a time when large numbers of young people across Europe are desperate for work.
"I do not intend letting out young people become a lost generation and the changes to the National Insurance are specifically designed to ensure that they get the work experience they need at a time when employers may need a little extra help to take a chance on a new employee."
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