A suggestion that tax allowances for higher earners may well deter some of these individuals from relocating to the island has been dismissed by the Treasury Minister.

Alex Allinson said: ‘I don’t think it will. We still half a higher tax rate of only 20% whereas across it’s 40% now.’

‘I think there is enough of a difference. When we look at the difference between people, whether they be single or married with children on the Isle of Man compared with the tax burden in the UK, the vast majority, if not all people, are better off on the Isle of Man.

There are some entrepreneurs who would argue that there’s been tax incentives in the United Kingdom: that’s because they’re often paying tax in the first place. We still have the Zero 10 Corporation Tax rate on the Isle of Man and so a lot of entrepreneurs will not be paying any tax here at all.

‘However, going into the next financial year we’re looking at the National Insurance scheme as it is at the moment.

‘We carried out a consultation late last year in terms of a range of issues such as class 2 and class 4 contributions, whether those should be amalgamated so that’s part of the work that we’re going to be starting on over the next 12 months.’

Will the Department for Enterprise now combining with Economic Strategy mean the loss of any existing business support schemes such as the small business grants?

‘What is really important in terms of the Isle of Man is to make sure that everyone benefits from the economy of the Isle of Man,’ he replied.

‘Now, the Department for Enterprise have a key role in that, in terms of encouraging new businesses to start: the Micro Business Scheme but also supporting those established businesses and getting more businesses to relocate here.

‘Whilst their funding in the past has been dependent on asking Treasury for various segmented funds, what we’re trying to do now is expand that, widen them out by use of the Economic Strategy Fund, and they’ll be key in terms of the delivery of the Economic Strategy.

‘So some of the Micro Business schemes, when you look at the results of those, they’re incredibly successful, and have really changed people’s lives and given them a huge, not just financial support, but that mentoring support and that advice that they need to start off in business which can be very challenging and quite scary for people, so that will continue.’

What is Dr Allinson’s message for business for the coming year?

He said: ‘I think the last three years have been incredibly difficult for everyone on our island and businesses in particular. Some of them have had to lay off staff that they’ve had for years.

‘What Government wants to do is work with business to make sure that we have the economic stability here so that we can preserve consumer confidence and we can then generate business confidence and move forward together. So we’re working quite closely with a range of organisations, particularly the Chamber of Commerce but other representatives of business too, to make sure that we respond in the right way and that we enable things going forward.

‘So a lot of the spend for the Economic Strategy Department will be directed to leverage private investment to enable people to develop their business models, to invest in things like research and development, new technologies and better ways of providing those services to actually allow businesses to expand.

‘The other big aspect of the cost of businesses is workforce and skills and there will be a huge amount of work being done over the next 12 months, looking at any perceived barriers to getting more people to work on the island such as work permits, such as immigration, such as advertising the Isle of Man as a place to come and live and work.’