THE Isle of Man will lose revenue of around £1.3 million next year due to the UK government’s announcement yesterday on fuel duties.
In the Autumn Statement delivered in the House of Commons by Chancellor of the Exchequer George Osborne, the government said that the 3p rise in fuel duty due in January 2012 will be postponed until August, and that the additional 2p rise in duty due next August will be abolished.
Treasury Minister Eddie Teare said in a statement this morning, “We estimate the cost of this to the Treasury will be around £1.3million next year.”
He added, “It is clear from yesterday’s Autumn Statement that the UK and the Isle of Man will continue to face tight financial times over the next few years.”
He said that Mr Osborne’s decision would benefit Isle of Man motorists by around £1.9million over the 15 months from January 2012, but added, “It does present a further challenge to the [Manx] government as we strive to rebalance the Island’s budget.”
Mr Teare also responded to the announcement on the UK’s proposals for pay and pensions. He added, “The proposals reinforce the need for these costs to be controlled going forward.
“Local public sector employee groups linked to UK pay and pension arrangements will of course be interested in the proposals set out by the Chancellor.”
Mr teare also noted that longer term changes to the State Pension and the merging of Tax and National Insurance could impact on the Island and he would be studying these details with his officers in due course.
