The Chamber of Commerce says this year’s Budget shows government is ‘in denial’ about the harsh realities being experienced by the majority of businesses, and their employees.
It says it is yet another missed opportunity to address many long-running issues which the organisation has highlighted for several years as being barriers to economic growth.
Chamber has five major concerns, including that the Budget will not drive economic growth or address the main challenges that businesses in many sectors are facing (i.e. rising costs, labour and skills shortages).
It said that the tax increases announced will increase these disparities, making the Isle of Man a less attractive option for workers from overseas.
It also noted that the Isle of Man is facing a demographic time-bomb that could explode in the next decade and that the Budget increases the tax-burden for many workers, especially single people and those on lower and middle incomes, at the same time as increasing the budgets for all government departments.
Chamber was pleased to hear Dr Allinson rubber stamp the important work of the recently established Skills Board and are keen to hear more about the support he will enable to progress the key actions
In short, the Budget is an example of Government being more focused on input than output in terms of the service delivery of departments. Chamber – as it has done since it published a Business Manifesto in the run up to the 2021 IOM General Election – has been calling for government to do more to improve efficiency across all departments.
Chamber has acknowledged some positives in the Budget including help for workers needing childcare and a review of procurement regulations to maximise benefit to the local economy.
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