Taxes, mortgages, and the cost of living are 'serious barriers’ to population growth

New report from Economic Policy Review Committee highlights factors

The Island’s economic environment is ‘particularly unattractive for single people’ and is ‘primarily attractive to those earning over £60,000 per year’.

They're the results of a new report from the Economic Policy Review Committee, which found that there are ‘serious barriers’ to population growth on the Island.

The Economic Policy Review Committee decided in December last year to look at government’s Economic Strategy – which forms part of its Island Plan.

Over the course of the last several months, it has heard evidence from the likes of Treasury, the Chief Minister, the Manx Development Corporation, the Department for Enterprise, the Isle of Man Chamber of Commerce, KPMG, private business owners and the Customs and Immigration Division.

We’ve been following those evidence sessions as they’ve happened – and some of the statements made were stark.

In the days after this year's Budget was voted through - Treasury Minister Alex Allinson faced a grilling:

Head of Customs and Immigration, Sandra Simpson told the committee that we've fallen behind the UK in terms of our immigration legislation:

And Chamber of Commerce President Kristan McDonald said government’s target of creating and filling 5,000 new jobs by 2032 hasn’t been set correctly:

The resulting report, published this week by the committee, says the ‘tax regime, the cost of living, and the cost of mortgages are push factors which will discourage UK residents from moving to the Island, will discourage Manx students from returning to the Island, and will encourage Manx residents to leave the Island’.

It states that ‘taken together, these barriers represent a significant threat to the achievement of the population target in the Government’s Economic Strategy’.

So, what happens next?

Well, the report will now be laid before Tynwald at its December sitting, and down the line, members will be asked to consider three key recommendations:

Firstly; that tax incentives for people to move to, and stay in, the Island should be extended to the working population and single people.

Secondly; that as part of the preparation for future Budget debates, Tynwald should be provided with comprehensive analysis of the impact of Budget proposals on net incomes for all family types.

And thirdly; that Treasury should devise a strategy in time for the next Budget to address personal allowances.