Be more Jersey? Manx ex-Treasury chief looks across the water as reserves dwindle

The Channel Islands and Isle of Man have long enjoyed a healthy competition over everything from tax and finance to who offers the better place to do business… but with warnings that the Manx purse is in peril, a former Minister has suggested the solution is to ‘be more Jersey’.

But amid warnings that one of its former Treasury Ministers has suggested it might be time to take a closer look at what Jersey is doing differently.

Eddie Teare, who controlled the Manx purse strings between 2011 and 2016, says the Isle of Man could run out of financial reserves without “drastic action” and has contrasted the island’s finances with Jersey’s ahead of next month’s general election, highlighting everything from government and health spending to the Island’s efforts to attract business.

And he even questioned whether recent adverts promoting Jersey and Guernsey in the Financial Times amounted to “a dig at the IoM”. 

Jersey envy?

Mr Teare’s intervention came as he issued a stark warning about the Isle of Man’s public finances while speaking to news publication Isle of Man Today.

He said the island had recorded cumulative deficits of more than £500 million over the past five years and was continuing to run a deficit of around £100 million annually, comparing it to Jersey’s surplus.

Around £460 million has been drawn from Manx reserves since 2018/19, according to the news report.

“Without drastic action our reserves will run out,” Mr Teare warned.

And his proposed solution includes taking a much closer look across the water.

Spending per person

Mr Teare argued that government spending per person should be compared with other jurisdictions.

He claimed this year’s budgets amounted to £18,280 per head in the Isle of Man, compared with £12,307 in Jersey and £12,958 in the UK.

“Should we not be analysing why the difference occurs?” he asked.

Health spending also came under his microscope, with Mr Teare putting the respective figures at £4,849 per person in the Isle of Man and £3,096 in Jersey – although he acknowledged that Jersey patients face charges. 

He questioned whether the Isle of Man should abolish Manx Care, the arm’s-length body established to run health services.

Battle of the islands

But it isn’t only government spending where Jersey and Guernsey appear to have caught the former minister’s eye.

Mr Teare questioned what the Manx government was doing to broaden its economy and attract new industries – before pointing to its fellow Crown Dependencies’ attempts to woo business.

“I notice that both Jersey and Guernsey occasionally advertise in the weekend edition of the Financial Times, the former advertising stable taxation,” he said.

“Is this not a dig at the IoM which raised the rate to 22% and then cut it by 1%? We need to stay competitive.” 

Mr Teare is not standing in next month’s election and said he was not endorsing any particular candidate.

But he urged voters to consider whether those seeking election had the “ability and will-power” to tackle the island’s financial challenges. 

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