Budget 2026: Treasury Minister’s plan for ‘stability, security and confidence’

Chris Thomas unveils financial outlook for year ahead

The treasury minister has told Tynwald this year’s Budget represents ‘stability, security and confidence’.

Chris Thomas believes the financial plan sets out a ‘pathway’ towards reducing the Island’s reliance on general reserves.

That’s despite what he describes as the continuing need for ‘significant’ public expenditure.

Revenue

Revenue spending for 2026-27 is budgeted at £1.47 billion representing a spend of £18,280 for each person on the Isle of Man.

Writing in the Pink Book Mr Thomas said this Budget had ‘stability’ and ‘security’ as its bywords when he received it after being appointed as minister in January.

“The substantial increase in the personal tax allowance announced in January is the reason why confidence has been added as an additional budget byword,” he added.

From April the personal tax allowance will increase by £2,250 for individuals and £4,500 for jointly assessed couples.

It represents the largest uplift in recent years and could bring around 3,600 people out of the tax net.

You can find out more HERE.

Public Services

Excluding healthcare £83 million will be invested in public services over the next 12 months.

Seventy-five percent of revenue bid funding, from government departments, has been approved.

The Department of Home Affairs will invest an additional £5.8 million on Island security and £4.1 million will be spent on police and fire vehicles.

An additional £2 million will be spent on the ambulance fleet.

The Department of Infrastructure will get £2.8 million extra for infrastructure and transport services.

This will include £660,000 to modernise and refurbish the main terminal at the Isle of Man Airport and £335,000 for maintenance and improvements in the tower.

There’ll also be £200,000 to address drainage on the airfield and £200,000 to develop plans to extend the passenger holding area.

The Department of Education, Sport and Culture will receive an extra £4.4 million to deliver the Childcare Strategy, vocational training assistance and apprenticeships.

An additional £2 million will be allocated to replace buildings and property.

The Housing Deficiency Fund will receive £8.5 million each year, for the next five years, to support local authority housing schemes.

The Housing and Communities Fund will receive an additional £1 million to support the work of the Housing and Communities Board.

Health

Forty-five million pounds of additional funding will be given to the Department of Health and Social Care taking the total budget, including that of Manx Care, to £412 million.

This will aim to fund improvements in the NHS including reducing waiting times, early intervention initiatives and improving care for older adults.

Reserves

Whilst government spending this year relies on the use of reserves, Treasury says this will dip over the next five years with a surplus forecast from 2028-29.

It adds it remains committed to responsibly growing government income whilst closely monitoring expenditure to build a ‘sustainable financial base’.

“Treasury sets out this financial plan in the full knowledge that it is demanding but essential.

“It is incumbent on the government as a whole to take responsibility for financial discipline to deliver public services in a financially stable way and protect the Island’s reserves.”

Pink Book 2026

Quarterly management accounts, and monthly scrutiny panels, will be used to drive service delivery efficiencies alongside the introduction of priority-based budgeting.

You can find out more about the Budget, and what it means for you, HERE.