Isle of Man firms say cost pressures now worse than during pandemic

Manx businesses say rising fuel, freight and wage costs have seen profits shrink

Rising costs have put Manx businesses "under more pressure than at any time during the pandemic", the Isle of Man Chamber of Commerce has said.

In a survey of 157 members, 35% said they had seen a "major" cut in income compared to 2019 and 80% said soaring fuel prices had the biggest impact.

April saw a 58% hike in Manx Gas bills and a 15% rise in electricity prices.

Chamber chief executive Rebecca George said firms "drowning in a tide of rising costs" needed government help.

The chamber has outlined a five-point plan with "important actions" which it said could be taken by the government to help businesses manage the increases.

'Extreme pressure'

Cost of freight, raw materials and increased wages were also blamed by the businesses for a loss of revenue, with about a quarter of respondents to the survey expecting to increase prices by 24% this month.

Ms George said this "extreme pressure" had led many to consider cutting services or costs and to start "thinking about making redundancies".

The body's five-point plan includes a call for targeted support for food, hospitality and retail firms to help them absorb costs, and the introduction of a temporary 12-month worker's visa to address staff shortages.

A freight charge subsidy for retail and hospitality businesses, the extension of a reduced VAT rate and the removal of the "second job tax" have also been proposed.

The plan was released by the chamber in conjunction with the Manx National Farmers' Union, Construction Isle of Man and the island's Licensed Victuallers Association.

The industry body, whose membership employs about 20,000 people on the island, has also arranged an urgent meeting with the Department for Enterprise to discuss the concerns.