£47 million overspent by four government departments

Department of Health and Social Care is £30 million over budget

Almost £47 million has been overspent by four government departments in the last financial year.

Tynwald members will be asked to approve supplementary votes at next month’s sitting of the court in order for them to be brought in on, or just under, budget by 31 March.

The Department of Health and Social Care has spent £30 million it didn’t have.

Education, Sport and Culture has overspent by £8,900,000, Infrastructure by £5,665,000 and the Department of Home Affairs by £2,200,000.

Treasury Minister Alex Allinson said: “The current economic situation has caused exceptional pressure on government departments, particularly around high inflation and pay awards, in addition to their own specific issues.

“Despite remedial action being taken, to minimise the impact, sustaining services vital to our community means extra funds will be required to cover expenditure. 

“Treasury has received regular updates throughout the year and will be working closely with the departments to ensure they continue to exercise strong financial management and control.

“While the separate supplementary votes indicate funding must be found from outside the year’s annual Budget allocation, a favourable financial position means Treasury is able to avoid the need to draw further on reserves.

“Additional income tax revenue of around £48m is expected to be received while expenditure from internal funds is lower by approximately £29m.

“As a consequence the amount drawn from reserves is forecast to be much lower than the planned £152.9m even taking into consideration the supplementary votes being requested by the Departments.”

The four ministers requesting the supplementary votes – Lawrie Hooper (DHSC), Julie Edge (DESC), Tim Crookall (DoI) and Jane Poole-Wilson (DHA) – will provide more information about their department’s financial position during the sitting of the court.

The Isle of Man Budget 2024/25 will be delivered in Tynwald on Tuesday, 20 February.