Chris Robertshaw has resigned from the Local Economy Forum due to serious concerns of the Treasury’s proposed National Insurance and rates relief measures.
Speaking following his decision to step down, Mr Robertshaw told Manx.News that he remained a strong supporter of the LEF but felt compelled to resign because of what he described as the Treasury Minister Alex Allinson’s treatment of the forum and its work.
He said his resignation was intended to allow the LEF to engage with Treasury proposals without his presence becoming an obstacle, despite his strong opposition to those proposals.
Proposals
Treasury has developed what Mr Robertshaw described as a “blunderbuss” support package involving National Insurance relief and rates rebates, which he estimates could cost around £20 million.
As presented to Tynwald members, the measures would target certain sectors, with rates rebates increasing depending on staff numbers, from full rates refunds for the smallest firms to multiple times the annual rates bill for larger employers.
The package also includes employer NI relief for under-24s, expected to run for up to two years, while rates relief is understood to last one year.
He described the approach as similar to Covid-era support measures and warned it could result in some businesses benefiting disproportionately while others are excluded.
The proposals are expected to be funded from government reserves and are aimed at easing pressure on businesses as the living wage is introduced.
Determined to Misunderstand
The LEF had put forward a detailed and targeted alternative proposal in November, designed to help the Treasury meet its requirement to move towards a living wage.
Mr Robertshaw said the proposal was “laser-focused”, would have benefited those on minimum wage and just above more than the Treasury’s current plans, and would have cost government very little while delivering an overall economic benefit.
The Treasury Minister Alex Allinson attended that November meeting and publicly stated he was there to listen and engage.
However, Mr Robertshaw claimed that when the LEF eventually met with the minister again last Monday (January 5), Dr Allinson appeared unfamiliar with the forum’s proposal and “determined to misunderstand it”.
Sugar Rush Approach
Mr Robertshaw argued the Treasury’s measures amount to a short-term “sugar rush” for the private sector, funded from reserves, while failing to address longer-term structural problems.
He also suggested the timing and scale of the proposals could be linked to the upcoming general election, and Dr Allinson using it as an opportunity to “look good before the election and to quieten short term criticism”.
He expressed concern that while businesses may feel compelled to accept the support, many will do so with unease, knowing that the relief is temporary.
As he understands it, the rates relief would last for one year, while employer National Insurance rebates for under-24s would run for two years.
Reliance on Reserves
Mr Robertshaw also criticised what he described as a lack of engagement and growing detachment within Treasury, contrasting it with what he said was more collaborative working under previous Treasury ministers.
Looking ahead, he warned that continued reliance on reserves and what he described as irresponsible fiscal management could have serious long-term consequences for the Isle of Man’s economy.
He also raised concerns about the sustainability of the National Insurance Fund, warning that future pension provision could be at risk if current trends continue.
Despite his resignation, Mr Robertshaw said he remained deeply concerned about the direction of economic policy and believed the Treasury’s approach risked leaving significant problems for the next House of Keys to resolve.
Manx.News has requested an interview with the Treasury Minster and the Enterprise Minister.
