Isle of Man Budget 2009

In the recent budget announced on 17th February 2009, the Isle of Man has bucked the global trend of significant additional borrowing and maintained a steady line in these times of financial troubles.

By committing to stringent budgetary controls, Isle of Man finances are in good shape to avoid the severe financial crisis experienced in the UK and beyond and also avoid having to borrow and spend its way out of trouble.  Despite a revenue shortage caused in a large part to the reduction in the VAT rate from 17.5% to 15% and falling corporate profits, tax rates and allowances have remained at 2008 levels.   The growth forecast for 2007/08 is provisionally estimated at 8.2%, for 2008/09 4.5% and for 2009/10 2.5% in real terms.
Despite the reduction in growth estimates it appears the Island’s economy is a far way from falling into recession.  Unemployment is still very low compared to other economies at a rate of 2.2% of the working population and employment is at its highest ever level with more than 46,000 in work.