Isle of Man Looks To Lock In Key Reforms
by Jason Gorringe, Lowtax.net, London
13 November, 2014
The Isle of Man Government has produced a report that recalls the island's recent achievements and identifies fiscal and economic policy challenges over the next ten years.
Titled "Securing A Sustainable Future For Our Island," the report notes that the economy has grown strongly, despite the economic crisis, and has maintained confidence and employment levels. The IoM has also successfully rebalanced its finances, following a substantial fall in value-added tax (VAT) revenue owing to the renegotiation of the revenue-sharing agreement with the UK Government. The island is on track to balance its budget by 2015/16, it says, noting that this has involved a number of key reforms including a restructuring of the Government from nine departments to seven and Government salary cuts of GBP53m (USD84m).
Looking ahead to the next decade, the report identifies responses to a number of anticipated challenges, including: remaining vigilant to external regulatory and political developments; balancing the budget longer-term, including dealing with reserve funds and public sector pensions; and maintaining the drive towards a smaller, smarter Government by reducing bureaucracy and increasing the use of technology.
Chief Minister, Allan Bell, said: "There is still much to do, but I am encouraged by our progress to date. We have delivered on many of the commitments made in Agenda for Change and have created a platform on which we can deliver further reform."
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