Isle of Man Today reports:
CHIEF Minister Tony Brown has warned [that] .. the cash-strapped UK is putting pressure on the Manx Government to revise the Island's VAT sharing arrangements.It is feared that between £50 million and £100 million of government revenue per year could be in jeopardy under any move to tighten the revenue sharing arrangements under the Customs agreement between the two countries.
Tynwald members have been invited to a special briefing on economic issues of 'considerable importance to the Island' tomorrow (Wednesday) morning.
The Manx Government's current net revenue spending is £572 million.
With the UK public finances deteriorating rapidly, Gordon Brown's administration is anxious to find new sources of tax revenue.
It is understood that one area coming under pressure from the UK is the Customs agreement with the Island, which currently provides more than half ‚Äî over £300 million ‚Äî of the Manx Government's income.
Under the terms of the deal, the UK could give two years' notice to terminate the agreement.