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Island looks at impact of UK budget

Report from Business Editor John Moss:

In today's United Kingdom budget the Chancellor, Alistair Darling (pictured) froze the planned rise in fuel duty.

That was good news for Manx motorists, who already pay a lot more than their UK counterparts.

The two pence a litre rise due next month will now be deferred until October, but there will be another rise of 0.5p per litre, in real terms, from 2010.

Excise duty on tobacco is going up, adding 11p on the price of a packet of 20 cigarettes and 4p to the cost of five cigars.

And from midnight on Sunday, alcohol duty rates will go up by 6% above inflation.

That means beer will rise by 4p a pint, cider by 3p a litre, wine will be 14p a bottle more expensive and spirits will cost 55p a bottle more.

These alcohol duties will increase by 2% above the rate of inflation, each year, for the next four years.

Treasury officers in the Island are studying the small print to see how else the Isle of Man will be affected, with 'non dom' provisions expected to cause ripples in Manx circles.

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