The Manx Budget Briefing Note

OVERVIEW

The Treasury Minister, Richard Corkill, presented his third Budget Speech to Tynwald this morning. He emphasised the impressive record of sixteen years successive economic growth with a real rate of 6% being maintained last year. The probable tax revenues in 1998/99 are stated to be £286m an increase of 7% over both the original estimate and the previous year.

In the early part of his Speech he dwelt at some length on what he chose to describe as "local difficulties" guaranteed to create uncertainty in the market place. The main issues surround moves by the EU on greater tax harmonisation and the OECD initiatives to combat harmful tax competition. In this context Treasury Minister stressed that the Government will "not do anything unilaterally which will damage the Island's economy". The Government will continue responsible dialogue with the EU via the UK and with the OECD direct.