THE government's annual report has been released and Chief Minister Tony Brown MHK has called the past year "an unusually demanding 12 months".

In the foreward to the report Mr Brown reflects on the actions taken by government to respond to changes in the world's political and fiscal landscape.

The annual report, which will be presented to the October sitting of Tynwald, provides an update on how government has performed against the actions set out in the Tynwald-approved Government Strategic Plan 2007-2011.

The work centres on four key policy objectives:

1. Income, employment and the economy

2. Government spending and revenues

3. Legislation and regulation

4. Quality of life

Mr Brown said "a well-regulated, diverse and resilient economy" helped the Island to weather the storm created by the global financial crisis, but adds that the UK’s revision of its VAT sharing arrangements with the Isle of Man led to a significant loss of income to the Manx Government.

He added: "This unwelcome and unprecedented development compelled government to re-examine its activities and spending, while retaining as its number one priority the protection of the most vulnerable in our society and support for those most in need."

The annual report highlights the five-year strategy to rebalance the Island’s Budget and the ongoing efforts to achieve greater efficiencies, cost savings and increased economic revenue.

A restructuring of government focused on the creation of a new Department of Economic Development to "spearhead a renewed drive for the growth and diversification necessary to sustain employment and public services in the future," Mr Brown said.

The Isle of Man responded to many other key challenges during the year, including the negotiation of a new reciprocal health agreement with the UK and independent assessments of its position as a leading international business centre.

A copy of the Isle of Man Government Annual Report 2010 is available by clicking here

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