Ramsey MHK pushes for reversal of income tax hike

Lawrie Hooper wants government to revert the rise back to 20 percent

Ramsey MHK Lawrie Hooper is calling on the Council of Ministers to reverse the two percent increase in the higher rate of personal income tax introduced in the 2024 Budget.

The tax hike raised the higher rate to 22 percent generating an additional £20 million in revenue that was ringfenced for healthcare.

At the time it was anticipated that the increase would eventually be replaced by a dedicated healthcare levy.

However Treasury Minister Alex Allinson has already ruled out reducing the tax rate.

Speaking in the House of Keys earlier this year Dr Allinson described it as "unlikely" that the tax increase would be replaced with the proposed levy.

Mr Hooper's request comes amid ongoing debates over how best to balance healthcare funding without affecting frontline services.

The issue is due to be discussed in Tynwald today (11 December).