MLP: Claims that there is no money don't 'stack up'

Party says Income Tax uplift should have been 'tapered'

Claims that there is 'no money' to pay for investment in healthcare, housing and education don’t 'stack up'.

The Manx Labour Party says it’s time for honesty about sustainability and fairness when it comes to making permanent financial commitments.

Its members - Douglas South MHK Sarah Maltby and Douglas East MHK Joney Faragher – voted against the Budget in Tynwald (17 February).

However they did support the order to uplift personal allowances for Income Tax.

“We believe allowing people to keep more of what they earn is the right principle but a Budget that embeds a significant, permanent draw on reserves while continuing to tell those asking for investment in healthcare, housing, education and support for the lowest paid that ‘there is no money’ doesn’t stack up.” - Manx Labour Party

From April individuals will start paying tax on annual earnings over £17,000 – an increase of £2,250 – and jointly assessed couples will see their limit rise from £29,500 to £34,000.   

Treasury says it will make many taxpayers almost £500 a year better off and create a ‘small uptick’ in local consumer spending.

It had been due to increase by £750 before new Treasury Minister Chris Thomas took up the post in January.

The decision to increase it further will cost £25 million a year.

The Manx Labour Party says alternative measures were suggested that would have reduced the draw on reserves whilst achieving the same goal.

However these options were not taken forward.

It's also called for more ‘open consultation’ before Budget Day saying greater transparency, and earlier engagement, would strengthen decision-making.

Despite supporting the personal allowance increase Party Leader Joney Faragher described it as a ‘raid’ on reserves saying it should have been a ‘tapered’ uplift:

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