THE Isle of Man's Treasury Minister Anne Craine MHK said measures in today's UK Budget will cost the Island £2m.

Giving her initial thoughts on the Budget, which has a number of implications for the Island, she said: "Clearly the reduction in fuel duty will be a particular help to motorists facing the current high cost of filling up.

"There is also a deferral to a planned increase in air passenger duty. These reductions will reduce our own income by around £2m in 2011-12."

Mrs Craine noted that a number of major issues were being considered such as the merging of tax and national insurance systems and a review of corporation tax in Northern Ireland.

She added: "We must always be aware that this is a competitive world and that the UK, like the Isle of Man, has clearly decided that low corporation taxes do encourage inward investment and job creation."

Mrs Craine said that, as ever, there was a huge amount of detail to take in and - along with her Treasury colleagues and staff - she would be working through it in the next few weeks.