He was speaking to the Alliance of Isle of Man Compliance Professionals and ahead of next week’s Budget.
He said: ‘I recognise that these are tough economic conditions for everybody and that businesses are struggling with costs, supply chains, staffing and productivity. I am afraid to say that the pressures will not get any easier over the next 12 months.
‘I expect that Manx Utilities [the state body that supplies electricity and water] will have no choice but to start raising prices substantially.
‘I know that maturing fixed-term mortgage payments are going to be an immense shock to some. Inflation, whilst perhaps peaking, is continuing to cause pressure on the cost of living and of course we continue to live with the global uncertainty created by a dangerous conflict on our doorstep.’
However, Mr Cannan also said that the government’s plan to grow the economy and create 5,000 jobs would make a difference.
‘This government is putting in place the foundations for long term success,’ he said.
‘We are not thinking in the short term – we have a long term plan in place that will not only gives us another 15 years of economic growth, but that will make the island a better place.
‘A better place to live and work, a better place for a more just society and a better place for people from all walks of life to succeed, not just in business and industry, but in sports, the arts and their daily lives.’