Pressure is mounting on the newly-elected MHKs to help local businesses survive the winter months.

The Licensed Victuallers’ Association (LVA) says there are serious concerns over how the island’s businesses will get through the next few months.

Geoff Joughin, chair of the LVA spoke to iomtoday.co.im about the growing concerns in the business community, and what he thinks Tynwald should do to help.

Mr Joughin said: ’Now the new government is elected, and they’re all sworn in, and as the Council of Ministers and the Chief Minister [are] about to be sorted out, I’m trying to remind them that all small businesses - not just pubs or restaurants - are going to be suffering now very, very badly going into the winter.’

He cited the lack of a full summer season due to late easing of border restrictions and the decrease in the number of tourists who have visited the island as a result.

In addition, recent changes in VAT rates arguably will be hitting businesses hard.

VAT rates for certain catering supplies and admissions to certain shows and attractions has gone back up to 12.5%.

They had been temporarily reduced to 5% to assist businesses during the Covid-19 pandemic.

Mr Joughin said: ’They’ve put the VAT back up to 12.5% and it’s going to be hard because that means prices are going to go back up.

’It’s going to slow trade down even more.’

He argued that the government should help businesses with salary support through the winter months, and perhaps launch some form of support for customers, to keep them coming through the doors.

He said: ’So what our idea is that they could subsidise that by having a voucher or percentage card to give people a discount to make up for that difference, like a loyalty thing that’s provided by the government and that could be done through all the restaurants.

’That would help them.’

In terms of pubs, he said: ’The wet trade in pubs is going to be badly affected.

’Everybody’s going away on holiday, there’s nobody coming in, and it’s going to be a very tight winter.

’People are still paying big interests on [loans] they’ve had throughout Covid. It can’t go on and they have to realise that.’

In the UK last August, the government ran the so-called ’Eat Out to Help Out’ scheme, in which customers received a 50% discount for meals, with the other half subsidised by the government.

This kind of scheme, along with a furlough type scheme for employers to help fund staff, would be welcomed by some business owners.

Indeed, Mr Joughin said: ’Instead of as in the past when they’ve had to prove 25% loss of business - if people were still trying to prove they were 25% down, they’d be bankrupt.

’It has to be a more accessible thing to ease people through.

’There has to be a way of helping businesses through this winter.’

He added: ’The Isle of Man’s full of small businesses, they definitely need help

’And they need as much help as all of the bigger places that do the shouting and get some help.’