Hospitality Call to Arms!

[Max Power]

The hospitality industry industry is calling for more government help! I think it is a valid request, but what do they want from government? 

The IOMG do not set the VAT rate, they can't force people to go out more, drink and eat more and spend what disposable income they have socialising. 

Perhaps there are too many places available now to go out, for the market which is available? I hate to say that because I love a vibrant nightlife and culture, but I feel that it was regulated out of existence by the police and licensing courts long ago!  

https://www.manxradio.com/news/isle-of-man-news/hospitality-bosses-to-attend-call-to-arms-meeting/

https://www.manxradio.com/news/isle-of-man-news/not-appropriate-for-govt-to-help-individuals-in-struggling-hospitality-sector/

Press release from the meeting tomorrow, apparently?

[Gizo]

Blame the pigs not government on the decline of the nighttime economy.  

[manxchester]

Press release:

 

Isle of Man Licensed Victualler’s Association Press Release

After a highly attended meeting comprising 74 hospitality venues, represented by around 100 owners and operators, with apologies from over 50 additional businesses, our Association issues this statement.

We speak not only for Small and Medium Enterprises (SMEs) within our sector but also for all small companies in our community grappling with the expenses of operating on the Isle of Man.

Our Association and allied traders refuse to remain passive observers as our friends and families struggle or close their businesses while the Isle of Man government mismanages the funds we and other small Manx businesses contribute to our economy.

We urge the Chief Minister, Treasury Minister, Enterprise Minister, and top Civil Servants in the Island’s Financial Departments to listen attentively. Our businesses are suffering, alongside our families and customers. It’s time for the government to address our Island’s issues.

It's imperative that the government heed the expertise of those within the industry. Instead of implementing ineffective schemes with exorbitant costs, they must address our genuine needs and those of our workforce.

Firstly, VAT is crippling our businesses, with 20% of every meal, sandwich, coffee, or pint going straight to government coffers. We reject the notion that the Island’s government cannot amend our VAT system when our fellow Crown Dependencies have zero or 5% sales tax rates. We don’t want to take government money, we want to keep more of what we have earned.

Secondly, the Isle of Man government has exploited its Minimum Wage legislation, disregarding the plight of lower-paid individuals. They have disproportionately burdened our lower-paid workers, it is unacceptable that someone earning the proposed Minimum Wage of £11.45 per hour would be taxed at the new highest rate of 22%.

We demand immediate adjustments to tax thresholds, aligning them with the Living Wage to ensure those earning at this level remain within the 10% Tax band.

National Insurance stands as a punitive tax on employment, stifling both employers and employees. Threshold adjustments are overdue, people are not being rewarded for taking on more work, the burden of low NI and Tax allowances is a major cause of the staffing problems the Isle of Man faces.

has risen by just £500. Much of the wage increases end up flowing back to the government rather than

Over the past six years, the standard tax rate

staying in the public's pocket to support spending in the economy and cope with the cost-of-living

challenges.

Aligning minimum wage age categories with those in the UK would alleviate employment and training issues, it is difficult to take the risk to recruit, train and develop younger staff, with the current system. Good employees will earn better wages through their own endeavours.

In the Licensing Industry, recent legislation has increased regulatory and training burdens on employers. Government support through schemes like VTAS should be streamlined and easily accessible to ensure compliance without unnecessary complexity and time-consuming interface with bureaucrats. We are small business owners, and our focus should be our customers, employees and suppliers.

The Isle of Man government holds the power to reduce Beer Excise Duty on locally brewed beers, providing immediate relief from rising costs for businesses and consumers alike.

Access to government grant and loan schemes has become overly complex or inaccessible for struggling businesses. We call for an overhaul of support available to small businesses, with a focus on aiding established businesses with improvements and green economy initiatives. To not only support export businesses but to support the ones here trying to operate within our community.

Energy costs remain a significant obstacle, necessitating the creation of reduced electricity tariffs and specialised pricing for heavy users in gas and heating fuels in business areas where consumption reduction is unfeasible.

Despite the challenges, our industry comprises resilient entrepreneurs deeply invested in serving our Island. We have long been significant contributors to government revenue, often remaining silent. However, we refuse to tolerate the government's disregard for the public purse and our businesses, staff, and families while they mismanage funds and disregard calls for change from Manx families.

On behalf of all who gave up their valuable time yesterday to consider all the challenges we face, we express deep disappointment in the closed-minded and inaccurate remarks made by the DfE Minister to the media today, without even hearing our feedback.

A further demonstration of a growing pattern of disregard for the concerns of our industry and the broader public, whose understanding and support for the islands small locally owned businesses is growing.

The Isle of Man Licensed Victuallers Association, Allied Trades, and Independent Local Businesses stand united.

[Non-Believer]

19 minutes ago, Max Power said:

The hospitality industry industry is calling for more government help! I think it is a valid request, but what do they want from government? 

The IOMG do not set the VAT rate, they can't force people to go out more, drink and eat more and spend what disposable income they have socialising. 

Perhaps there are too many places available now to go out, for the market which is available? I hate to say that because I love a vibrant nightlife and culture, but I feel that it was regulated out of existence by the police and licensing courts long ago!  

https://www.manxradio.com/news/isle-of-man-news/hospitality-bosses-to-attend-call-to-arms-meeting/

https://www.manxradio.com/news/isle-of-man-news/not-appropriate-for-govt-to-help-individuals-in-struggling-hospitality-sector/

Press release from the meeting tomorrow, apparently?

Too many places now for the shrinking amount of disposable income which is causing people to be more selective and less frequent in their socialising involving hospitality.

Think back ten, fifteen years and what it was like then. Even more so if you go back further to the boom years of the finance sector.

[Declan]

That's a better statement than I expected them to come out with. 

[Max Power]

Many businesses really struggle on the island due to the low population. I was involved in the motor trade both here and in the UK, this is a high cost business. Everything was extremely fragile but employed a lot of people. Government paid lip service for years and did nothing when scammers brought in below par imports, threatening livelihoods with cars bought in Belgium which were VAT subsidised by the manufacturer. Then they quietly ignored it when all the VAT problems surfaced and cancelled the bills owed by high profile islanders! They ignored all the expensive failures when Gypsies had driven cars with the speedo disconnected, leading to dangerous incidents with the new owners. They let a handful of dishonest horse traders get away with murder, at least one of them is behind bars now! 

Our government are ineffectual wankers, paralysed by fear of risking their pensions, they don't stand up for honest business, they see them all as cash cows to be milked.  

In my opinion, the one good thing they could do is break away from the common purse agreement, and set our own taxes. But they will sit on their hands forever, talk about it until the cows come home and do nothing!

[Moghrey Mie]

Whatever happened to the Hospitality Forum?

There are too many venues for a population of 85,000. We can't sustain coffee shops on every corner.

I agree about raising the threshold for tax payers. Anybody on the minimum wage shouldn't be paying income tax.

I hope employees are in a union to fight for their interests.

[TheTeapot]

I read about the ability to change alcohol duty on locally produced products a while ago, but I've never been able to find it again. I had always thought that because of the common purse agreement we were kind of stuck with English and Welsh rates but it's not true. There's a clause. That is something that should happen immediately.

[Twitch]

36 minutes ago, Declan said:

That's a better statement than I expected them to come out with. 

What were you expecting, and why?

[Harry Lamb]

Just now, Twitch said:

What were you expecting, and why?

Time, gentlemen, please

[Declan]

10 minutes ago, Twitch said:

What were you expecting, and why?

I was expecting them to just blame the employees getting paid an increasing the minimum wage. When it's more nuanced than that, which the statement recognises. 

Why? Whenever there's a hospitality business bemoaning the situation its presented that way. But that may be Manx Radio's fault. 

Edited April 19 by Declan

[Anthony Ingham]

A decent statement making some valid points, especially regarding tax thresholds and low earners.

Unfortunately, statements like “. We reject the notion that the Island’s government cannot amend our VAT system when our fellow Crown Dependencies have zero or 5% sales tax rates” undermine the whole thing and show a basic lack of understanding of the VAT arrangements here and in Jersey.

[Declan]

14 minutes ago, Anthony Ingham said:

A decent statement making some valid points, especially regarding tax thresholds and low earners.

Unfortunately, statements like “. We reject the notion that the Island’s government cannot amend our VAT system when our fellow Crown Dependencies have zero or 5% sales tax rates” undermine the whole thing and show a basic lack of understanding of the VAT arrangements here and in Jersey.

The Government could attempt to renegotiate the common purse agreement. But I recognise that is a drastic measure. 

Is there an opportunity to return some VAT in certain sectors, if the Govt wanted it? 

[Blade Runner]

"Access to government grant and loan schemes has become overly complex"

Was always so when I was on the rock

Filling in a form for brain dead CS that had no interest in helping because if they did help you that meant they had to do some work............

Edited April 19 by Blade Runner

[Andy Onchan]

They make some very valid points and Treasury should take heed unless they wish to see unemployment levels rise creating further pressure on the coffers.

Edited April 19 by Andy Onchan