Tax rises not way to offset cuts - Chief Minister

Raising taxes to reduce the impact of public spending cuts could damage the Manx economy in the long run .

That's the view of Chief Minister Allan Bell, in response to suggestions rates could have been increased to help the Island through its current economic difficulties.

Personal allowances and the lower and higher rates of tax were unchanged in yesterday's Budget.

Instead, £55 million was taken from reserves to offset the £35 million pounds shaved-off proposed spending for the coming year.

Mr Bell says taxation rates help define the business environment the Island offers and changing them could re-bound on the Island negatively: