Business leaders and government ministers met this week to talk about their concerns about the economy.

As this week’s Isle of Man Examiner reported, the Chamber of Commerce said rising fuel, freight and other costs had created a ‘perfect storm’ that means businesses are now under more financial pressure than at any other time during the pandemic.

The Chamber of Commerce conducted a survey about the rising costs of doing business in the island.

A total of 157 local firms took part, with 35% saying they have seen major reductions in their revenues compared to 2019.

Soaring fuel costs are the most important factor, according to the survey, with 80% citing it as having the biggest impact, followed by the cost of freight, raw materials and wages.

On Thursday the government said it ‘reaffirmed its commitment to supporting businesses and targeting long-term economic stability’.

Enterprise Minister Alex Allinson described the meeting as productive.

He said a range of issued were raised by Chamber of Commerce members about doing business in the Isle of Man.

‘Work to this effect is already underway across a number of fronts discussed, including the recent introduction of the Seasonal Worker Visa route and relocation incentive for tourism and hospitality workers to address skills shortages in this sector,’ he said.

‘It is clear that we are facing another period of uncertainty.

‘As the world recovers from the Covid-19 pandemic, conflict in Europe continues and a significant inflation cycle is challenging our cost of living. We are committed to stepping up to respond to these challenges where we can and strengthen consumer confidence.’

He said he was grateful to the Chamber of Commerce for communicating the concerns of their members and said the government would continue to work closely and collaboratively with them, the local business community and other ‘key stakeholders’ to consider ‘targeted, evidence based support where appropriate, which aims for long-term economic sustainability and stability for our island’.

Treasury Minister David Ashford said: ‘International developments have caused unrest in the global business economy, and Treasury is working across government to consider the implications these will have on residents of the Isle of Man, and to understand whether there will be a need for measures to be put in place over the short to medium term to support those who are experiencing difficulty.

‘In all cases we must remain realistic and cautious, and it is of the upmost importance that any government intervention does not cause a distortion of competition or create market inefficiency.

‘We do also has to be affordable and sustainable in the long term and I will be bringing forward a statement to April’s Tynwald on the overall position and our responses.’

The Chamber represents businesses that employ 20,000 people or half of the island’s private sector workforce.

In the Examiner this week Chamber chief executive Rebecca George said: ‘Businesses, especially small businesses that are right at the heart of our community, need help from government to weather this storm.

‘Our research has shown that businesses are drowning in a rising tide of costs with the latest survey results revealing that many are now also under extreme pressure from spiralling energy and freight costs, as well as increased wages.

‘The majority are having to increase prices, and many are also considering scaling back services to cut costs, or thinking about making redundancies.

‘All of this has a domino effect on other firms in the supply chain, and the economy. It’s also important to consider the human cost in terms of health and wellbeing.

‘Customers, suppliers and everyone else who relies on businesses that play such an important role in the local community are being affected too – so this is not just a business issue.’

The Chamber’s wish list included targeted support for the food supply chain, hospitality and small retail firms, to address workforce shortage by calling for the introduction of a 12-month worker’s visa and schemes to encourage economically active people into the workplace, the removal of the second job tax, the introduction of a freight charge subsidy for Manx retail and and hospitality businesses, and the extension of the 12.5% VAT rate for hospitality.