News

Summary of the Isle of Man Budget – July 2020

Budget

  • A £100m Economic Recovery Fund will be created to bolster businesses, promote innovation, create training and employment opportunities, and invest in the domestic economy;
  • The Council of Ministers has commissioned a series of projects to stimulate the internal economy, create and protect employment, and provide investment in the Island;
  • Research will be undertaken into how the Island can seize on opportunities presented by the crisis and, looking ahead, be well-placed as the global economy settles over the coming months;
  • £17.5m will be withdrawn from the contingency fund - topping up the £40m transferred earlier in the year - to cover the projected cost of coronavirus support packages as well as the forecast shortfall in departmental budgets set in February;
  • The Salary Support Scheme and MERA have been extended for certain sectors through to September, providing further direct support to those involved in travel, tourism, and fisheries. A £10m Working Capital Loan scheme will also be available to enable businesses to resume activity;
  • A £250m revolving credit facility will be set up over two years to establish an alternative source of liquidity, if required, to meet future financial challenges as they arise;
  • A review of the capital programme has been undertaken, with increased focus on an acceleration of schemes that support the economy and local employment market;
  • To date, the Salary Support Scheme has supported 1,999 jobs and 12,295 businesses and paid out £27.5m; the Strategic Capacity Scheme has paid out £2.5m to 182 hotels and tourist accommodation providers; the Business Support Scheme has paid out £9.2M to 3,061 businesses; the Disruption Loan Scheme has backed £1.8m of loans for 37 applications, protecting 275 jobs;
  • Between 1 March and 13 July the Manx Earnings Replacement Allowance paid out £3.4m, Income Support £8.3m, Job Seeker’s Allowance £2.2m and Incapacity benefit £1m;
  • More than £30m of Government taxation payments have been deferred;
  • Economic surveys have recently drawn feedback from 400 businesses and 500 households; 
  • The number of people registered unemployed was 400 in March, rising to 1,350 by the beginning of May. There are currently around 1,100 people registered as unemployed and claiming Jobseeker’s Allowance.

To see the full budget, please go here.

To see a forecast cost of the support packages available, please go here.

Issued by the Isle of Man Treasury, 21 July 2020

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