Survey shows Isle of Man businesses fear wage and electricity rises

A third of the firms who took part said they could not absorb the cost increases

The cost of wages and electricity bills form the two biggest concerns facing Manx businesses, a survey by a business lobby group has revealed.

Sixty-five companies took part in the Isle of Man Chamber of Commerce quarterly economic survey.

CEO Rebecca George said that while inflation and energy costs were highlighted as fears in previous polls, those worries had intensified.

She said businesses faced "the toughest trading conditions" for many years.

A third of firms taking part in the poll did not believe they would be able to "absorb the cost increases into their prices", the survey said.

'Business confidence'

The electricity cap is due to be lifted on 31 March, leaving bills set to rise by 51% on average by July.

The expected impact of the minimum wage was also cited as a key concern, while the affect of availability and affordability of housing on recruitment was also a major worry.

A new £10.75 hourly rate, which will come into force on 1 April, was approved by Tynwald in February.

However, the survey also showed that profitability and "business confidence" both remained static compared to the previous quarterly report at the end of last year.

More than half of the businesses that took part have said they had staff vacancies.

Ms George said results from the survey covering the first quarter of 2023 showed that there had been "a significant shift regarding the immediate future" due to "heightened fears about rising operating costs".

"It's clear that businesses in many sectors are facing the toughest trading conditions they have experienced for many years," she added.