The Chamber of Commerce has further responded to this year’s Budget saying 98% of its members say it will not help their business.
It has published the open letter on ‘behalf of our membership and their 22,000 employees drawn from across all sizes and sectors of our economy’,
In it, Chamber says ‘we write to ask you to act decisively to re-establish real fiscal responsibility across Ministers and Departments to regain the confidence of businesses following last week’s budget’.
Results of a survey conducted across all sectors of Chamber members at the end of last week:
98% say the budget won’t help their business
96% say it won’t help their employees
95% say that tax rises should have been matched with corresponding savings in government
expenditure
Over half of employers don’t believe the childcare support in the budget will help their employees
Chamber added: ‘In a nutshell, the overwhelming feeling of our members is that last week’s budget was bad for business, employees, and demoralising for business owners.’
It has said it wants to see urgent action from government, including Strategic Board of public and private sector members to be responsible for the economy, a Treasury Minister and team (political and officer) that understands business, our economy, and its structure and said that the size, cost and scope of government needs tackling, urgently, with preference for a single legal entity.
In his response, Dr Allinson said he is concerned by the issues raised and said it has been a ‘difficult Budget to deliver and there was naturally going to be concern around a temporary increase in Income Tax to meet the growing demands on our NHS’.
Dr Allinson added that the Budget was created to protect front line services and added: ‘The Budget was debated on 20 February and approved by Tynwald with no member voting against the proposed tax changes or budgetary allocations. I respect the view of Tynwald.’
The vote of no confidence from Chamber adds to growing pressure on the government following the Budget which included MHKs seeking the views of constituents over whether it is time for a change at the top.
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