Ashford: Businesses not consulted on minimum wage changes

And chair of LVA claims government move is a drive to increase taxation

Businesses on the Isle of Man haven’t been properly consulted about the impact the ‘harmonisation’ of the living wage and minimum wage would have on them.

That’s the view of Douglas North MHK David Ashford who has asked Treasury and the Department for Enterprise to publish details about economic impact assessments.

He’s told Manx Radio it doesn’t appear consultation has been wide-reaching:

In 2021, Tynwald approved that minimum wage should transition to the living wage within five years – a recommendation adopted into the Island Plan with a completion date of 2025.

Treasury says the inflationary environment has ‘understandably raised concerns about the impact of minimum wage policies’ on businesses.

It says it has received representation from the Chamber of Commerce and some of its members on this and these viewpoints are being reviewed ‘alongside wider research’.

It adds that the Minimum Wage Committee collects evidence and consults with stakeholders about recommendations on minimum wage rates.

Andy Saunders is the chairman of the Licensed Victuallers Association – he says he believes the objective to bring the two wages in line is a drive to increase taxation:

The Department for Enterprise adds it has not undertaken a formal economic impact assessment or consulted formally on the plans.

You can see Mr Ashford's questions to both Treasury and the Department for Enterprise by clicking these links.