Businesses Cast Negative Ballots, Signifying ‘No Confidence’ in Budget
Businesses on the Isle of Man have expressed a “vote of no confidence” in the 2024–25 budget, citing concerns over a 2% increase in the higher income tax rate and changes to national insurance thresholds. The financial plan, approved by Tynwald last week, has faced criticism from the Isle of Man Chamber of Commerce, which represents over 500 firms employing approximately 22,000 workers. In an open letter to Treasury Minister Alex Allinson, the Chamber revealed that 98% of its surveyed members believed the budget would not benefit their businesses.
According to the Chamber’s survey, 96% of respondents stated that the measures would not assist their employees, and 95% believed corresponding government savings should have accompanied tax increases. The Chamber also raised concerns about the “size, cost, and scope of government,” urging urgent attention to address these issues.
In response, Dr. Allinson expressed concern about the letter but defended the budget, emphasizing its focus on investing in frontline public services and the people. He noted that a commitment had been made to review tax and child benefit thresholds once the agreed-upon changes stabilized the island’s finances. The Treasury Minister highlighted an upcoming debate on a new tax strategy in March, with the long-term goal of broadening the island’s tax base and reducing personal taxation.
The Isle of Man Chamber of Commerce labeled the budget as “bad for business, employees, and demoralizing for business owners” and called for urgent action to restore businesses’ stability, confidence, and optimism. Dr. Allinson emphasized collaboration with the private sector and the incorporation of its expertise in developing the government’s economic strategy and island plan. He stated that the budget’s guiding principles aimed to preserve essential public services while setting the stage for long-term fiscal responsibility. The concerns businesses raise underscore the delicate balance governments must navigate between revenue generation and maintaining a conducive environment for business growth.
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