A business owner on the island has said that the government isn’t listening to people on the ground.
Manx.News received a statement from the owner of a convenience store who has called out the government over the proposed minimum wage increase.
Next week Tynwald will be looking to increase the minimum wage from £12.25 to £13.46.
Not Listening
The business owner told Manx.News that “most small business owners on the Isle of Man are already earning less than the minimum wage themselves, just to keep their staff employed and their doors open”.
They added: “The government isn’t listening to the people on the ground. This feels less like sound economic policy and more like a move to win votes in the next election — something they can point to and say, ‘We did this,’ while ignoring the long-term damage it will cause.
“The reality is this proposal risks creating mass redundancies and widespread closures of independent local businesses.”
Can’t Compete
They explained that their prices are compared to Tesco “every single day”, but they simply can’t compete.
They added: “With a 9.9% wage increase, we’ll have no choice but to raise prices further, just to survive.
“If government truly wanted to support both workers and businesses, they would look at increasing tax and VAT thresholds — just as Jersey and Guernsey have done — to give small businesses the breathing space to afford higher wages without pushing up prices. That would create a fairer, more sustainable way forward for everyone.”
Irony
They also said that the “irony is that any extra income individuals receive will likely be spent with large corporations or online retailers, not in local shops that reinvest in our island’s economy”.
Adding: “So while government tax receipts might rise in the short term, the community will lose jobs, services, and the heart of its high streets and villages.”
