A new survey of the island’s business leaders has highlighted a significant decline in confidence towards the Manx economy, alongside growing calls for government reform and cost control.
The Institute of Directors (IoD) Isle of Man has published the results of its third Policy Voice survey, capturing the views of local business leaders on the economy, government policy, and the upcoming budget.
The findings show 66% of respondents are pessimistic about the island’s economic prospects for the next year, a sharp increase from the 51% recorded in October 2024.
Despite this, confidence in individual business performance remains stronger, with half of the respondents optimistic about their own organisations’ outlook.
Understanding
The survey indicates a strong feeling that government lacks understanding of the business environment, with 70% of respondents expressing this view, up from 60% last October. Only one in ten respondents felt that there is an understanding.
Key issues for businesses were also identified with nearly 60% of respondents cited employee skills gaps and overall economic conditions as their most pressing issues, followed by air and sea links and the costs of compliance.
Concerns were raised about rising government costs and public sector size. An overwhelming 91% of respondents agreed that the public sector is too large, with calls for efficiency measures and meaningful cost control across all departments.
Reform
The results showed strong backing for reform, with 85% of respondents supporting a significant reduction in the island’s 21 local authorities.
There is also strong support for electoral reform, with members suggesting an island-wide voting system.
Steve Billinghurst, Chair of IoD Isle of Man, said: “These results provide a clear message – while businesses remain resilient, there is growing frustration with the scale and structure of government and a perceived lack of focus on economic growth.
“Our members want to see change that will make the Isle of Man more competitive, efficient, and attractive for investment.”
He added: “Ahead of the 2026 General Election, we will be articulating how we believe this can be best achieved.
“We will continue to engage in a constructive dialogue with the key individuals within the Isle of Man Government and will use the next Policy Voice survey to shape our 2026 Election Manifesto.”
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