Union backing over spending cuts

By 2011 the Isle of Man will see a £100m loss in revenue

Civil servants on the Isle of Man worried about redundancies due to cuts in public spending have been told their union will offer support.

The 1,600 members of Prospect, which is largely made up of public sector workers, attended a meeting with the union president Catherine Donaldson.

The government needs to find about £90m of savings after a UK revision of the VAT sharing arrangements.

Ms Donaldson said: "They will receive support from a professional union."

The new arrangement, which has been signed, will result in an annual loss of revenue of at least £50m from April 2010, rising to £100m from April 2011.

Added to revenue reductions already projected because of the UK's economic performance and the lower VAT rate, the island faces a total £90m loss in 2010 and £140m thereafter.

A government spokesman said: "Everything is in the early stages at the moment, but job losses will definitely be one of the last options.

"We are in a strong position, we are not in recession and we have enough in our reserves."