Government employees will also receive another flat rate pay increase of £500, as announced in today’s budget sitting of the Legislative Assembly.
In what was described as “another positive step” and “significant constitutional progress”, MLA Jack Ford presented this year’s Budget to Legislative Assembly this morning.
He said MLAs had been elected at the end of last year on a “mandate of prudent fiscal responsibility” and, as well as announcing a series of measures, he mentioned other even more austere measures that had been considered but rejected.
MLA Ford said that a “measured approach” had been taken.
After interest payments on FIG’s borrowing, the forecast for next year’s operating budget is a tiny surplus of £200,000. MLA Ford said even the bigger operating surpluses forecast in the following years would be below target.
Even without so called “nice to haves”, FIG’s operating expenditure in the coming financial year will be £118.2 million, an increase of £14.4 million from the amount approved this time last year.
The amount earmarked in this year’s budget for capital expenditure is lower than last year at £96.2 million.
So let’s have a look at some of the key decisions that might affect you:
There has already been a lot of discussion on social media about the announcement that the Travel Credit Scheme will be “paused” from this July, with remaining credits having to be used by the end of June next year or they will be lost.
Embarkation tax will also go up another £1 at the start of next year.
The Chair of the Assembly will receive an extra £7,800 a year, and FIG employees will receive another flat rate pay award of £500 as well as the award of salary step increments in accordance with grade progression for all those eligible
The minimum wage will cross the £10 an hour threshold when it goes up 5.3% from £9.66 to £10.17.
However, those increases will be fully subject to tax as the personal allowance remains unchanged, again, and the rates for income tax and corporation tax stay the same.
Pensions and retirement pension contributions will increase by 2.7%, in line with inflation as of September 2025 . A full pension will now be £202.51 per week from July 1 and from next January RPCs will go up 65p per week for employees and £1.30 per week for the self-employed.
Service charges and FIG rents will also go up by 2.7%. Proposals for higher increases on both of those had been rejected.
The electricity price will stay the same for now at 35 pence per unit.
Many fees and charges will increase by 2.7% as well, but some increases will be much higher:
Road tax will go up 30%.
Overseas postal rates will nearly double.
Visa, Permits and Status applications to increase up to 100%.
Firearms licensing fees will more than double – registration will go up from £23.10 to £50.00.
Customs duties will be going up too:
Duties on alcohol will go up between 3% and 4%.
On cigarettes and cigars, it will go up by 10%.
On tobacco, 20% and, on vapes, 30%.
