Businesses 'vote no confidence' in budget

The Chamber of Commerce received 201 responses from its survey

Businesses have registered a "vote of no confidence" in the Manx budget for 2024-25, a lobby group has said.

The financial plan, which included a 2% rise in the higher rate of income tax and changes to National Insurance thresholds, was approved by Tynwald last week.

In an open letter to the treasury minister the Isle of Man Chamber of Commerce said 98% of the 201 of its members to reply to its survey said the financial plan would not help their business.

In his response, Alex Allinson while he was "concerned" to receive the letter, the budget would invest "in front line public services and the people".

The chamber, represents more than 500 firms that collectively employ about 22,000 island workers, said 96% of the survey respondents stated the measures would not help their employees.

Meanwhile 95% said tax rises "should have been matched with corresponding savings in government".

Members also took issue with the "size, cost and scope of government", which the board said needed to be tackled "urgently".

That was an issue also raised during a evidence session held by Tynwald's Economic Policy Review Committee on Monday in the wake of the budget.

'Fiscal responsibility'

In its letter, the chamber branded the budget "bad for business, employees, and demoralising for business owners".

It said it was seeking "urgent action" to rebuild "stability, confidence, and optimism for businesses".

Dr Allinson said he had committed in his budget to review tax and child benefit thresholds once the island's finances were "stabilised by the changes that have been agreed by Tynwald".

A new tax strategy is due to be debated during the March sitting of Tynwald.

That had "the long term goal of broadening the island’s tax base and reducing personal taxation", but the guiding principles of the latest budget were to "preserve essential public services", he said.

Dr Allinson said he had collaborated with the private sector and incorporated its expertise regarding the government's economic strategy and island plan.