Industry heads voice dissatisfaction as details of support packages to be revealed
Tomorrow, the first Tynwald sitting of the year will get underway.
And much of the attention will be on the treasury minister as he plans to give more details about business support packages ahead of the rise in minimum wage later this year.
From 1 April, the Island's single hourly rate will increase from £12.25 to £13.46.
That's an increase of 9.9 percent.
Since the announcement in October, many business owners on the Isle of Man have spoken out about the financial pressures they are under.
Speaking previously to Manx Radio, Treasury Minister Alex Allinson said it was about making the minimum wage meet the living wage, adding it's something the government had been speaking about since the start of the current administration.
You can find out more HERE.
Support package
Last week in the House of Keys, Dr Allinson said more details about planned business support would be revealed.
The minister said the schemes would be developed to assist the hardest-hit businesses, particularly in hospitality and retail.
While the total estimated cost has not yet been finalised, the minister says the support will be time-limited and designed to 'ease the transition' rather than provide an ongoing subsidy.
Dissatisfaction
In recent days, a number of businesses have echoed their dissatisfaction, calling once again for government to rethink the rate increase.
The Licensed Victuallers Association says members are feeling the impact of rising costs day by day.
Read more HERE.
Meanwhile, the Chamber of Commerce warned of the impact on employment, business viability and the wider economy.
The Chamber has also voiced its support to a motion Onchan MHK Julie Edge will take to the court proposing a five per cent increase from 1 April followed by a 4.9 per cent rise from 1 November.
The secretary of the Local Economy Forum says there's a general sense that government 'doesn't get it'.
Brett Martin says they'd like government to introduce a tax credit system:
Andy Saunders, the owner of The Original Quids Inn in Douglas, says businesses don't need support packages but need government to assist with the cost of energy, staffing and transportation of stock:
Clear commitment
An Isle of Man Government spokesperson says: "The Isle of Man Government recognises the pressures some businesses may face from the Tynwald-approved Minimum Wage increase in April.
"This follows a clear commitment made in 2021 as part of Our Island Plan and a number of significant Tynwald debates following recommendations by the Select Committee on Poverty.
"Current economic challenges stand against a background of inflationary pressures, increases in energy prices and changes in consumer confidence and behaviours.
"The ongoing dialogue with a wide range of businesses and sector representatives is both appreciated and valued.
"As the Chief Minister outlined in December’s Tynwald sitting, Government is committed to developing a targeted scheme to assist those businesses to transition to the new mechanism of calculating the Minimum Wage as 66% of the median pay for full-time employees on the Isle of Man.
"Treasury has been working with the Department for Enterprise to develop proposals for a support package to address current concerns and details will be discussed at [this week's] sitting of Tynwald."
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