Inflation, Energy and Staff Costs are Biggest Concerns to Businesses

The Chamber of Commerce says its members are concerned about the impact of growing inflation and labour costs.

In a survey, compiled before the gov’s announced electricity price cap, businesses aired their concerns ahead of the winter.

Figures from the organisation’s quarterly economic survey for Q3 2022 showed a massive 94.9% of respondents citing inflation as their major worry. Other concerns they expressed about the foreseeable future included interest rates (33.6%); taxation (28.5%); business rates (21.4%); competitor businesses (18.3%); and exchange rates (16.3%).

The results also showed that 89% said they were worried about rising energy costs while 83% cited labour costs, followed by raw materials (70%); fuel (65%); and finance costs (30%) as the other major financial pressures.

Chamber CEO Rebecca George said: ‘The results show a significant shift towards greater concerns about the foreseeable future, with several indicators making it clear that businesses are experiencing the toughest conditions they have faced for many years.

‘Data for the survey was gathered between August 22^nd and September 16^th – so data was collected before Tynwald approved an electricity cap which freezes the current prices until March 2023. Even so, Chamber feels that the latest survey data supports other data and anecdotal evidence we have from members which illustrate serious concerns about the winter ahead.

‘As always, Chamber’s dialogue with our members and Isle of Man Government will continue, and we will be holding regular meetings with both the Treasury and Department for Enterprise to ensure that they remain fully aware of the challenges that businesses are facing.’

Businesses taking part also showed they had greater concerns than their UK counterparts around profitability for the next 12 months, 64% of IOM businesses that responded said they expected profits to decrease over that period, compared to 39% in the BCC survey.