The Manx public should lower expectations as to what government can deliver.

That's the view of Treasury Minister Allan Bell as the Island enters a new economic era.

Government revenues have been plunged into near-crisis by the United Kingdom’s decision to claw back £50 million from the VAT revenue sharing arrangement next year.

That, coupled with the expected drop in receipts due to the lower VAT rate and a change in the way our share is calculated, will mean a total loss to government coffers of £90 million in the next financial year.

The figure is around 20 per cent of the government's current annual budget and Mr Bell says it's clear tougher times lie ahead.

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Courtesy of Manx Radio