Isle of Man business leaders have expressed their ‘dissatisfaction’ on the government’s economic policies.

The Institute of Directors (IoD) Isle of Man has published the results of its third Policy Voice survey, capturing the views of local business leaders on matters relating to the island’s economy and the 2025/26 Budget.

The findings highlight a growing sense of unease among IoD members, with a third of respondents expressing pessimism about the Island’s economic prospects over the next 12 months.

The figure marks a sharp decline from the October 2024 survey, in which just over half voiced such pessimism.

Despite this, confidence in individual business performance remains stronger, with half of the respondents optimistic about their own organisations’ outlook.

The survey shows there is a strong feeling among business leaders that the government lacks understanding of the business environment and how its policies truly impact it.

Only one in ten respondents felt that there is an understanding, helped by the outreach from the Department of Enterprise’s various agencies.

Steve Billinghurst, chair of IoD Isle of Man, hopes the government will take note and says the institute will continue to work with government to try and improve policy decision-making.

He said: ‘These results provide a clear message - while businesses remain resilient, there is growing frustration with the scale and structure of government and a perceived lack of focus on economic growth.

‘Our members want to see change that will make the Isle of Man more competitive, efficient, and attractive for investment. Ahead of the 2026 General Election, we will be articulating how we believe this can be best achieved.

‘We will continue to engage in a constructive dialogue with the key individuals within the Isle of Man Government and will use the next Policy Voice survey to shape our 2026 Election Manifesto.’

Key issues such as taxation and regulation, transport and connectivity, education and skills for business, digital innovation and the machinery of government were all addressed in the survey.

Those taking part came from a broad cross-section of industries, including retail, hospitality and charities ,as well as a core from financial and professional services.

The survey also identified key issues for businesses. Nearly 60% of respondents cited employee skills gaps and overall economic conditions as their most pressing issues, followed by air and sea links and the costs of compliance.

Concerns were also raised about rising government costs and an expanding public sector headcount. An overwhelming 91% of respondents agreed that the public sector is too large, with calls for efficiency measures and meaningful cost control across all departments.

Another strong theme emerging from the results is the call for government reform with 85% supporting a significant reduction in the Island’s 21 local authorities.

Additionally, there is strong backing for electoral reform, with members suggesting an island-wide voting system to increase voter engagement and focus debate on national and international issues.

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