The Chamber of Commerce has issued a stark warning that the 9.9% minimum wage increase approved by Tynwald will have a “devastating” impact on the island’s economy and business survival.
Rebecca George, the Chamber’s CEO, stated the organisation “could not have fought harder to make the case for balance and realism.”
She revealed that even the Treasury minister has acknowledged the decision “will create challenges for small businesses”.
Businesses had warned for months that the rise was “simply unaffordable,” she said.
Allowances
Ms George argued the government could have helped workers through “higher tax allowances or National Insurance thresholds” instead of a move that puts “jobs investment and training at risks”.
She warned that businesses now face harsh choices. “Some will raise prices. Some will shed jobs and some will spend the next few months deciding whether they can even survive beyond next April”.
Ms George predicted the true crisis will emerge next winter. “That is when the true Fallout will be felt, when the reserves are gone and when costs have compounded.”
The Chamber vowed to continue its campaign, stating it “will not roll over” in the “wider war for our future economy”.