The Manx government has embarked on the annual exercise of studying the United Kingdom budget, to see how the Island might be affected.

Treasury Minister Allan Bell says the largest potential impact could be in the rise in the upper earnings limit for national insurance contributions, which will come into effect in the UK from April next year.

Officials are finding out whether the proposal is covered by the reciprocal arrangements on national insurance, which would mean its automatic introduction here as well.

The measure could generate several million pounds of additional income for the Manx Treasury from the 2008/9 financial year which, the Treasury says, would have to be fed into future budget calculations.

Mr Bell says the inflation linked increases by the Chancellor of duty on beer, cider and cigarettes were broadly in line with his own projections, announced in the Manx budget on Tuesday.

Mr Bell notes there is no increase in duty on spirits and a deferred rise in fuel duty, due to come in from October this year.

The Treasury Minister concludes by saying he will be paying particular attention to announcements in the UK budget in respect of film and offshore funds.

The Isle of Man Retail Price Index is not expected to be affected by the various changes.