Leadership, loyalty and the economy: What we learned from the CM's urgent statement

From collective responsibility to minimum wage reform, the chief minister's urgent statement offered insight into the government’s priorities - and the divisions beneath them

Alfred Cannan used an urgent statement in Tynwald to set out his rationale for two high-profile ministerial sackings and to signal a change in direction on several contentious policies, while offering rare early indications of what may be contained in next month’s Budget.

While Budget measures are typically kept under tight control until Budget Day, the chief minister confirmed changes affecting both personal tax allowances and the minimum wage, outlining what workers and businesses could expect from April.

Dr Alex Allinson was removed from Treasury, while Dr Michelle Haywood was dismissed from the Department of Infrastructure, following months of public controversy and growing political pressure.

The CM began by placing the decisions in the context of what he described as four and a half years of significant external challenges, including global conflicts, geopolitical uncertainty and high inflation. Despite this, he claimed the government had pursued an ambitious agenda aimed at building a “secure, vibrant and sustainable” future for the Island – the tagline of the Cannan administration.

While he thanked both outgoing ministers for their service, he said tensions had arisen around a number of policies which had strained relationships with the public, the business community and local authorities, and acknowledged that public confidence had been drifting and that business sentiment had hardened, adding that continuing on the same course without adjustment would be wrong.

Mr Cannan said he had concluded that the government’s “direction of travel” needed to change on three fronts: the minimum wage, the 20mph speed-limit rollout, and the Local Government (Amendment) Bill.

On the minimum wage, he believed there was significant depth of feeling about the scale of recent proposed increases, which would have seen rates rise by almost 10 percent. He announced that the previous proposals had been scrapped and replaced with a five percent increase from April.

Alongside this, Mr Cannan hinted at changes expected in next month’s Budget, including a “significant rise in personal tax allowances for those most in need”. He said this approach would better target support through the tax system, increase disposable income and help improve living standards across the Island.

Turning to infrastructure policy, he confirmed that the new minister Tim Crookall had immediately halted the 20mph rollout upon his appointment. The Department of Infrastructure will now revisit its plans, with a focus on "protecting children and vulnerable people around schools and healthcare settings, while avoiding blanket or overly prescriptive controls across large areas of the Island".

On local government reform, the CM said the infrastructure minister would write to all local authorities offering to pause and revisit the Local Government (Amendment) Bill, particularly Clause five, which has prompted concern among local boards.

Clause five has come under fire in recent months as it would enable the DOI to impose functions on local authorities, without granting additional funding to carry out those services.

Concluding his statement, the Mr Cannan said the aim was to steady the ship, listen more carefully and proceed with greater understanding, adding that "no-one in Tynwald wanted to leave behind a sense of negativity and frustration between government and society".

However, from the questions that followed, it also emerged that the chief minister had informed Arbory, Castletown and Malew MHK Tim Glover of Dr Haywood’s removal before she had been told herself.

Mr Glover questioned whether that approach reflected strong leadership, or amounted to an act of cowardice.

The CM rejected that characterisation, saying he could not "win" when accused on the one hand of failing to communicate, and on the other of communicating too early.

He went on to say decisions of this nature were complex, but that once taken they had to be implemented quickly and decisively.

Mr Cannan was also asked why the enterprise minister remains in his role after he supported Dr Allinson's approach to minimum wage, with the chief minister explaining that his reshuffle was designed to 'redress balance'.