Government is ready to implement ’plan B’ should Covid return, Tynwald was told.

Giving an update on his Economic Recovery Plan, Treasury Minister Alfred Cannan said the economic impact of the virus has been less damaging than initially forecast.

’But we cannot be complacent,’ he said.

Mr Cannan said the island is well prepared in the event greater levels of support for residents and businesses need to be introduced.

He said: ’We must acknowledge and accept that events could turn quickly against us and if they do we are prepared and ready to implement "plan B", should our economy demand it.’

The Minister explained: ’We are able to turn salary support back on. We can reintroduce MERA.

’We have reserve schemes ready to go. Government work schemes could be implemented.

’And we have prepared additional financial support should public finances require it.’

Tynwald in July approved funding of £100m for measures to protect the economy.

An economic recovery group has now been formed to drive allocation of the fund through a stimulus programme.

So far 19 initiatives are either approved, underway or in formation, signalling £12.1m in additional economic funding.

This week, the court will be asked to approve £1.75m Manx Restart Scheme which aims to create 120 new jobs for the long term unemployed, with government subsidising the living wage salary and costs.