These are the highlights and announcements from the 2025 Budget.
• Higher rate of Income Tax to fall from 22% to 21%.
• Personal income tax allowance to rise by £250 for individuals, £500 for jointly-assessed couples.
• Changes to National Insurance thresholds will mean more take-home pay for many.
• More families can claim Child Benefit as thresholds increase by £10,000.
• Protection for businesses with no increase to employer National Insurance contributions.
• Tax cap for the super-rich to be raised to £220,000 a year.
• Most benefits to rise in line with September 2024 inflation - reciprocal benefits by 1.7% (UK CPI) and others by 2.2% (Manx CPI).
• The basic state pension will increase by 4.1% to £176.45 a week. The Manx state pension will also rise by 4.1% to £251.30 a week.
• The winter bonus will be increased by £50 to £400.
• All government departments will receive uplifts for 2% for pay and 1% for non-pay.
• £25m extra available for Health and Social Care.
• Education funding to increase by £8.3m.
• Government revenue spending for 2025-26 budgeted at £1.46bn, representing £17,249 for every person in the island.
• Capital expenditure of £87.4m in 2025-26.
• More than £1m invested in improving sports facilities and £6.1m committed to maintaining the island’s roads.
• A maximum of £110.6m to be drawn down from reserves to balance the budget.
• £5.3m committed to digitising/automating processes across Isle of Man Government.
More stories from the 2025 Budget
- How thousands of people will soon be paying less tax
- How the Budget announcement risked being derailed by pension debate
- Treasury Minister Dr Alex Allinson’s Budget speech in full
- More money for government departments but ‘it’s probably not enough’
- Treasury Minister committed to school plan despite its absence
- 17 key changes and developments announced