Business

Business

By Amy Griffiths

Andy Saunders - Quids Inn owner

Taking to social media, owner of Quids Inn and Licensed Victuallers Association member Andy Saunders reflected on the Budget.

He says it's not just those at the bottom who are struggling on the Island, arguing many workers and business owners are also in trouble, and increasing the minimum wage won't help them.

He's supported, instead, the treasury minister's decision to increase the personal tax thresholds, saying it's the 'most effective way to assist the many rather than just a select few'.

Andy believes the Island now needs adjustments to National Insurance thresholds to provide all working individuals with a fair opportunity in this 'challenging economic climate'.

Local Economy Forum

The Local Economy Forum was created last year in protest of the planned 9.9 percent increase to the minimum wage.

Speaking after the Budget, it said it welcomed the move to significantly increase the personal tax allowance.

At the time, it praised the chief minister for asking Alex Allinson to step down as treasury minister, and now it's applauded his replacement Chris Thomas for taking 'swift and decisive action to recover as much of the ground lost as possible during the five-year life of this house in what should have been regular and reasonable adjustments to the value of the personal tax allowance'.

The forum says this action, when linked to the 5% increase in the minimum wage from April, 'will result in the take-home pay of those most directly affected being nearly the equivalent of that which would have been the case had the proposed 10% increase actually been enacted'.

However, it claims that during this administration, the income tax take had jumped dramatically 'from £250 million to £413 million per annum' and the government wage bill has increased 'alarmingly' from '£439 million to £605 million', all while the economy has 'little more than flatlined and the multi-million pound raid on the reserves has continued remorselessly'. 

It says it's 'past time these deeply serious issues were dealt with', but hopes the decisive action of Mr Thomas is 'indicative of a new determination to do so'.

Isle of Man Chamber of Commerce

The Isle of Man Chamber of Commerce has called the Budget a 'step in the right direction', but believes government reforms are still needed to improve efficiency.

It praised the increase in the personal tax allowance and the freezing of the basic income tax at 21%, saying it provides 'stability at a time of economic uncertainty'. 

However, it also raised a number of concerns, including the fact that most people are still no better off than they were when the basic tax rate stood at 20% two years ago.

It also believes the fundamental question about the cost and size of government remains unanswered.

It says if the Island is serious about restoring financial resilience, public sector pay restraint must be considered, and that at the very least, a freeze should be on the table. It believes a 10% reduction in wage costs, or equivalent streamlining in headcount, would deliver meaningful reform and allow private sector wages to catch up, restoring fairness between sectors.

It's also described the continued reliance on reserves as a 'concern', arguing with £1 billion having already been drawn down in recent years, the trajectory is 'not sustainable'. 

While it says the Budget does contain some positive measures, real, meaningful change will only come from reducing the cost base of government.