The topic of the Isle of Man’s national insurance rates was raised in the House of Keys this week.
MHK for Arbory, Castletown and Malew, Mr Moorhouse, asked the Treasury Minister Dr Alex Allinson whether his department planned to review the national rates.
The question followed a series of announcements last week from the Chancellor of the Exchequer in the UK, Jeremy Hunt, about the changing and adjustment of National Insurance rates.
The chancellor is cutting the main rate paid by workers from 12% to 10%, which he has said will benefit 27 million people.
Dr Allinson replied: ‘I am aware that a series of announcements were made last week in the UK regarding proposed changes to their National Insurance system.
‘The Treasury is currently considering these proposed changes and how they might impact our separate National Insurance system.
‘It’s intended that we will provide further details to Tynwald in next week’s sitting’.
In a supplementary question posed by Mr Moorhouse, the prospect of UK insurance rates being more attractive than the island’s current rates was put forward.
Talking about this, Dr Allinson said: ‘Obviously, at the moment, we are very keen to make sure that we can attract active working people to relocate to the island but also stay if they’re already here.
‘Our rates of income tax remains significantly less than the United Kingdom. I think we need to look at that entire package as well as the quality of life.
‘However, I completely agree that we need to be absolutely certain that we’re offering the best deal for people to relocate and stay on the island, and that includes benefits that we pay out of the National Insurance scheme as well.
‘It’s important that we have a sustainable system for both people to pay in, but also benefit from our National Insurance system.’