The Isle of Man Chamber of Commerce have released the following statement in response to the yesterday's Budget.
"The fine detail of the budget still needs to be studied and the implications measured, but the Isle of Man Chamber of Commerce broadly welcomes the Treasury Minister’s budget. It has struck a fair balance between three of the four principles the Minister laid out in opening his speech.
We concur with the Treasury Minister that the zero ten regime for taxation of companies is the corner stone of our economy and we are extremely pleased to hear his reassurance that the zero rate for companies is here to stay. This will give confidence to businesses here and to those who are looking to invest in the Island. We hope this message is very clear to all on the Island but perhaps more importantly, to those considering investment here. The Island competes for business with other zero rated international business centres and we do indeed ‘tinker with it at our peril’.
We commend removing over 10,000 from paying income tax by increasing the personal allowance from 2016 and the resulting simplification of the income tax system and the delicate changes to the social security and welfare benefits, particularly the Carer’s Allowance to ensure the most vulnerable are protected and those who can afford to pay do so.
We are, however, disappointed with the changes to the very successful National Insurance Holiday scheme. This was something Chamber had specifically asked to be retained. 1,685 jobs being created since the scheme was introduced is an economic driver that has delivered significant beneficial results for the relatively small cost of ?1,300 per job created.
We also have concerns that the ‘rebalancing’ is apparently still relying on using reserves to support Government spending which must be kept in line with income. We must all appreciate that does mean spending less money and not plugging gaps by adding in small tax charges.
There are many initiatives such as Government’s proposed Digital Strategy which Chamber fully supports: online filings with company registry, work permits, as examples, which would be welcomed by business and would reduce costs for Government. There are ways of reducing costs by efficiencies without the need to damage front line services. We urge Government to swiftly proceed with the work of the Cabinet Office, started by Mr Robertshaw and to be continued by Mr Shimmin.
Finally, the key to a sustainable future is a combination of ensuring the scope and size of Government is affordable and efficient whilst making sure the Island is always in the right place to enable us to continue our enviable record of economic growth."
