Chief Minister Warns of 'Challenging' Budget Fiasco as Manx Care Sees £43m Funding Boost

Manx Chief Minister Alfred Cannan has declared that it will be a "very challenging" task to put Manx Care's budget back on track, despite efforts to reduce the forecasted overspend. The health care body recently announced measures worth £5 million, but further cuts, including hospital ward closures, were not supported by the Council of Ministers.

In a statement delivered in the House of Keys, Cannan reassured lawmakers that there would be no exploration of charging for clinical services and no plans to privatise them. However, he acknowledged the gravity of the situation, stating that "seriousness" needs to be applied when deciding on future funding approaches.

The Council of Ministers recently introduced a 2% increase in the higher rate of income tax, specifically earmarking this additional revenue towards health and social care spending. As a result, Manx Care's budget increased by £43 million to £346 million for the upcoming financial year.

In response to questions about the viability of keeping to projected targets, Cannan stressed that it would be "very challenging" but urged Manx Care to "make every effort" to find efficiencies and savings to address cost improvement plans. He warned that a correct alignment is needed in order to safeguard long-term financial sustainability and secure resources.

Cannan remains committed to delivering frontline services to patients while recognizing the severity of overspend, emphasizing the need for forward-thinking measures going forward.