ISLE OF MAN.
WHERE YOU CAN
Discover THE
agenda for
change in our
economy
“Let’s secure the economic future of
the Isle of Man by creating a world class
International Business Centre which
allows new and existing businesses to
thrive, drives excellence in everything
we do and provides opportunities to our
workers, young and old.”
Hon Allan Bell MHK, Chief Minister
Contents
Foreword from the Chief Minister
Government’s Statement of Intent
Overview of Our Economy
Our Plans: Emerging sectors
Our Plans: Established sectors
- Manufacturing
- Visitor economy, retail and construction
Our Plans: Financial and Professional Services
Government Resources to support Growth
Competing Internationally
A Single Brand: ‘Isle of Man. Where you can’
Fiscal Policy: a Stable Platform for Growth
How we will measure economic success
Closing Remarks
1
2
2
4
5
6
8
10
12
13
14
16
16
17
Foreword
Developing our economy in a
dynamic and sustainable way is at the
very heart of Government’s vision for
the Isle of Man.
The “Agenda for Change” policy
document launched in January
provides a clear indication of our
priorities and direction of travel
in five key areas – the Economy;
Environment and Infrastructure; Good
Government; Income and Expenditure;
Wellbeing and Welfare Reform.
It will form the basis for our
strategic planning process and all
Departments, Statutory Boards
and Offices of Government will be
expected to ensure that their plans
and objectives are aligned with the
priorities identified.
Stimulating further economic
growth will be crucial as we continue
to respond to the challenge of
rebalancing our finances, as well as
adapting to changes in the world’s
political and fiscal landscape.
For our part, the Isle of Man
Government will remain supportive,
approachable and flexible in order
to create a nimble, responsive and
business-focused environment.
We will work with the private sector
to build on the Island’s reputation
for innovation, enterprise and
professionalism in order to create new
opportunities with our United Kingdom
and international trading partners.
To move forward in these times
of change, we must continue to be
positive and invest in our future with
confidence.
This document outlines
the Department of Economic
Development’s plans to develop and
diversify the Isle of Man’s economy
and sets out clear business targets.
find out more: www.whereyoucan.im
The Isle of Man is well placed
to succeed and I am confident that
together we can drive forward to build
on our track record of 30 years of
unbroken economic growth.
Hon Allan Bell MHK
Chief Minister
1
These statements of intent have
been used to develop the plans set
out in this document.
2
• Average gross earnings have
risen substantially to 1£612 per
week such that they are now
in line with the UK. As income
tax is less than half that in the
UK, this means net earnings are
significantly higher in the Isle of
Man.
Over the last 30 years:
• National Income has grown in
real terms by 16% annually –
double that of the average for
the developed world.
• Unemployment in the Isle of
Man is 12.6% compared to an
average of 5.5% across the
developed world (i.e. the OECD
countries).
• As a result, National Income per
person relative to the UK has
increased from little more than
half to now more than double.
Our economy is now more
diverse – both in terms of sectors
and global markets – than ever
before. We will continue to build
upon this solid foundation to
ensure future generations can
enjoy similar success.
• Our population has grown from
1
64,500 to 184,500, driven by
excellent job creation such that
there are now more people in
work than ever before in living
memory.
17.5
PERCENTAGE CHANGE IN GDP AT CONSTANT PRICES 1990/91 - 2010/11 (%)
12.5
7.5
Change in Constant Price GDP (%)
-7.5
2010/11
2009/10
2007/08
2008/09
2006/07
2005/06
2004/05
2003/04
2001/02
2002/03
1999/00
2000/01
1997/98
1998/99
1996/97
1995/96
1994/95
-2.5
1993/94
2.5
1991/92
Priority 1. We will energise the
Island’s ability to innovate and
create our future industries.
Priority 2. We will forge new
sustainable relationships with other
countries and business partners.
Priority 3. We will reduce
bureaucracy for businesses.
Priority 4. We will support local
businesses to promote the Island in
target markets.
Priority 5. We will help young
people to find employment.
Priority 6. We will broaden the
school curriculum to provide
more opportunities for applied and
vocational learning.
Priority 7. We will work with the
construction industry to meet the
Island’s housing needs.
Priority 8. We will use our natural
resources to work towards building
a post carbon fuelled Island.
Priority 9. We will acknowledge and
promote the economic value of our
sport, arts, culture and heritage.
Economic growth is the
foundation on which any
community’s long-term welfare
is built. The Isle of Man has
performed exceptionally well by
any measure.
1992/93
It is Government’s role to create
the right environment for business
to flourish.
Our promotional and business
development ethos of
“The Isle of Man. Where you can”
seeks to encapsulate the positive
attitude we must use to drive
forward our efforts.
To help achieve sustainable
growth in our economy,
Government’s ‘Agenda for Change’
policy document set outs nine
statements of intent. They are:
Overview of our Economy
1990/91
Government’s
Statement of
Intent
The economy can be broadly
divided into 6 logical groups of
sectors:
1. Emerging sectors such as
e-gaming, ICT, space and cleantech which are growing rapidly
and demonstrate the Isle of Man
is genuinely a diverse International
Business Centre.
2. Established sectors such as the
visitor economy, manufacturing,
construction and retail sector
which remain key to employment.
3. Financial and professional
services such as banking,
insurance, fund management and
fiduciary services which have been
key to the Isle of Man’s success for
the last 30 years – and remain so.
4. Supporting sectors which support
the needs of both businesses and
households, from transport and
utilities to personal services.
5. The public sector. Health,
education and other public
services play a vital role in our
quality of life and help to create
an environment where both
individuals and businesses can
flourish. Government’s plans for
changes to the public sector are
addressed by the other aspects of
the ‘Agenda for Change’ and so
are not addressed here.
6. The third sector. This comprises
charities and other not-for-profit
organisations which play a vital
role in providing services for
our community, especially the
vulnerable.
The first 3 groups will be key to
driving future growth and prosperity.
Our plans for each of these 3 groups
is set out in the following pages.
Our outlook for 2013/14 is
encouraging. We expect National
Income to grow in real terms by
2
4% and the total number of new
jobs to increase by 2500-600, driven
by growth in these 3 key groups of
sectors.
PROJECTED GROWTH IN THE ISLE OF MAN ECONOMY BY SECTOR DURING 2013/14
Financial Services £27.3m
Emerging Sectors £42.0m
Rest of Economy £77.7m
Established Sectors £8.4m
1
2
Source: Department of Economic Affairs Job Market Statistics, Isle of Man Government, January 2013
Department of Economic Development planning estimate
find out more: www.whereyoucan.im
3
Our Plans: Emerging Sectors
Our Goal
To maintain a dynamic and
diverse economy that is increasingly
acknowledged as an innovative
forward thinking jurisdiction
with a “Can do” attitude towards
development and supporting new
businesses.
Primary Objectives
• Maintain and further enhance
a business environment where
innovation and a “Can do” attitude
can flourish.
• Work closely with the private
sector to identify new niche
business opportunities and to
work in partnership to take new
propositions to market.
• Drive the growth of existing,
emerging and innovative sectors
such as bio-medical, clean-tech,
space commerce, e-Gaming and
Information Communications
Technology (ICT).
• Actively investigate opportunities
to further diversify the economy
to ensure the Island is resilient to a
systemic threat or downturn in any
one sector.
• Research, prioritise and pursue
opportunities to exploit the Island’s
natural resources for commercial
opportunity in energy and
aggregates.
Environment
The Island has been able to
maintain positive economic growth
for some 30 years due to the diversity
of our economy. Unlike many of
our nearest competitors, we are
NEW SECTORS EMPLOYMENT
ESTIMATED CURRENT TOTAL
not overly reliant on any one sector
but this diversification has meant an
increasing trend of those who would
mimic and seek to compete with us.
While there have been many
noticeable success stories in
e-gaming, data hosting and space,
we need to continue to exploit areas
where innovation and first mover
advantage can be secured.
We are seeing increasing interest
in high-growth global sectors
including bio-medical and cleantech.
While naturally small at present,
it is anticipated that, if properly
nurtured, significant employment
opportunities can be built.
In 2013, these specific new sectors
alone are forecast to create over 160
new jobs.
NEW SECTORS EMPLOYMENT
ESTIMATED INCREASE IN JOBS 2013/14
100
800
700
80
600
500
60
400
40
300
200
20
100
0
0
Clean Tech
Space
Bio Medical
ICT
e-Gaming
Source: Department of Economic Development
estimate 2013 /14 based on industry surveys
4
Clean Tech
Space
Bio Medical
ICT
e-Gaming
Source: Department of Economic Development
estimate 2013 based on industry surveys
Priorities*
• Resource and deliver the
e-Gaming Strategy developed
between Private Sector and
Government. (1,2,4)*
•
• Develop the opportunities
presented by the ICT sector
particularly surrounding software
development and internet enabled
business. (1,2,4)*
•
•
•
• Capitalise on the existing
infrastructure to drive increased
use of ‘Cloud’ solutions for new
and existing businesses to the Isle
of Man. (1,2,4,6)*
Encourage further investment
in telecoms and related
infrastructure. (1)*
Increase the training provision in
ICT related skills. (1,5,6,8)*
Identify and encourage new
sources of Private Sector funding
for early stage start ups. (1,4)*
Prioritise and pursue opportunities
to utilise the Island’s natural
resources for commercial
opportunity, e.g. exploit the
opportunities in the marine spatial
plan. (8)*
• Consider special treatment of new
areas in regulatory or legislative
change to ensure that full
opportunity is given to incubation
businesses to grow. (4)*
• Support the Private Sector with
informed decisions on the sector
skills support based on the
industry survey. (5, 6)*
*(alignment to Statements of Intent
appear in brackets}
Our Plans: Established Sectors
EMPLOYMENT TRENDS (ESTABLISHED SECTORS)
Wholesale Distribution
25,000
Manufacturing: General
20,000
Manufacturing: Engineering
Catering & Entertainment
15,000
Tourist Accommodation
Retail Distribution
10,000
Utilities
Construction
5,00
Mining & Quarrying
Manufacturing: Food & Drink
0
2008-9
2009-10
2010-11
2011-12
Agrictulture, Forestry & Fishing
Source: Department of Economic Affairs, Isle of Man Government, National Income Statistics 2010/11
Overview
As one would expect from a
diverse economy, the established
sectors represent a wide range of
activities. To simplify this grouping
we have split the analysis between
manufacturing (including engineering
and general) and other more
traditional sectors.
Despite difficult global times
3
the Isle of Man’s total employment
has been resilient, but it is sensible
to prepare for a different, more
competitive landscape in the future.
The policy of diversification
throughout the economy leaves it in
a stronger place than many.
Established sector employment
has seen only a slight decline over
recent years and currently forms
around 320% of National Income
(2010/11).
Despite the global economic
downturn in 2009/10 following the
banking crisis, most of the Island’s
sectors have remained remarkably
stable in absolute employment terms.
That said, Government recognises
that the different established sectors
face different challenges, hence we
have specific plans to support each.
Department of Economic Affairs, National Income Statistics 2010/11
find out more: www.whereyoucan.im
5
Manufacturing
Our Goal
Maintain and grow a sustainable
modern manufacturing sector that is
focussed on helping existing businesses
to invest and expand whilst creating an
environment attractive to new inward
investment.
Primary Objectives
• Support local industry to raise skill levels
and address the demand for increased
engineering training provision to meet
identified growth opportunities.
• Promote quality and the continuous
improvement of manufacturing
practices to meet customer
expectations.
• Maintain a competitive operating
environment for manufacturing and
encourage investment in innovation
and technological advancements.
• Pursue high technology high added
value activities.
6
Environment
The manufacturing sector is a
core sector that accounts for over
4
8% of total employment. The sector
also generates significant local
expenditure in other sectors such
as energy, transport and services,
therefore its economic contribution is
significantly higher than this headline
figure suggests.
Aerospace engineering is a key
strength and offers good growth
potential. Globally, aircraft airframe
and engine build rates are currently
at record levels and set to increase
further, creating substantial
opportunities for growth locally.
Priorities*
• Work with the Department of
Education & Children and the
College to develop an engineering
skills academy by Sept 2013. (5,6)*
• Rollout implementation of phase
2 of the Journey to Process
Excellence Model (a Rolls Royce
continuous improvement model)
to a second cohort of engineering
businesses. (1)*
• Provide funding support to
encourage capital investment in
new technology and the drive
to improved productivity and
higher added value activities and
to encourage businesses to seek
out new markets and customers.
(1,3,4)*
• Promote the work of the Isle
of Man Aerospace Cluster and
manufacturing more generally in
the UK and further afield to attract
appropriate new manufacturing
businesses to the Island. (4, 8)*
• Deliver a programme of
workshops and events with the
Northwest Aerospace Alliance
and ADS (the trade organisation
advancing the UK Aerospace,
Defence, Security and Space
industries) designed to provide
local businesses with market
intelligence, industry news and
best practice initiatives and links
and networking opportunities. (1,
2)*
• Review key elements of the Isle of
Man’s cost base such as industrial
energy prices to help to maintain
a sustainable environment for
manufacturing. (1)*
*(alignment to Statements of Intent
appear in brackets)
EMPLOYMENT TRENDS - MANUFACTURING SECTOR
4,500
4,000
3,500
Manufacturing General
3,000
Manufacturing: Food & Drink
2,500
Manufacturing: Engineering
2,000
1,500
1,000
500
0
2008-9
2009-10
2010-11
2011-12
Source: The Treasury Department, Isle of Man Government, Income Tax Division,
Employment & ITIP Returns various years
4
Income Tax Division, Employment & ITIP Returns various years
find out more: www.whereyoucan.im
7
Visitor economy, retail
and construction
Our Goal
To help support these important
established industries and to diversify
where there are opportunities to do so.
Primary Objectives
• Grow visitor numbers and their spend
through additional efforts targeted at
niche segments and new events.
• Drive inward investment through
our diversification strategy in order
to create wealth and stimulate
demand in such sectors as retail and
construction.
• Support local sectors to raise
skill levels with targeted training
programmes.
• Develop a vibrant, diverse retail
and leisure sector which is key to
attracting both visitors and business
investment.
• Ensure the work permit system
continues to protect vulnerable
sectors and individuals while ensuring
we attract the skilled labour we need
to support growth.
• Maintain an extensive and stable air
and sea communications network.
8
Environment
Priorities*
The largest sub-sectors within
these more traditional established
industries are formed by retail and
construction as well as tourist
accommodation and hospitality.
Construction has suffered more than
most with tourist accommodation
having seen very slight declines over
recent years whilst current retail
trends are relatively flat.
The most recent data for these
industries comes from 12 months ago
and it is expected that a further small
decline in national income for these
sectors will be seen for the period
2012-13 due to challenging retail
trading environments and difficult
housing and commercial property
market conditions.
However, these sectors remain
important for the Isle of Man,
especially in terms of jobs and
influence on the overall quality
of life that we enjoy. With recent
innovations in the way we promote
the sectors and challenges
to traditional approaches, the
Government is determined to ensure
no opportunity is left fallow.
• Expand initiatives to assist
the long term unemployed
(including young people) in close
collaboration with the Department
of Social Care, to ensure
employment opportunities for Isle
of Man workers. (3, 5, 7)*
• Review the work permit system
and enact reforms as appropriate.
• Update the Department of
Economic Development’s financial
assistance scheme to ensure it
remains fit for purpose. (1, 3, 7)*
• Using the recent Destination
Management Audit, we will
undertake to drive up quality in the
Isle of Man as a visitor destination
and exploit new niche segments,
e.g. extreme sports, experiential,
visiting friends and relations, cruise
visitors etc. (1, 2, 4, 9)*
• We will continue to deliver new
events to drive up visitor numbers,
e.g. the TT Triathlon in June 2013
and to introduce the Classic TT in
August 2013 as part of the new Isle
of Man Festival of Motorsport and
realise its potential as a “second
TT” with a target of 20,000 visitors
by 2016. (1, 2, 4, 9)*
• Develop a new retail strategy
and publish in summer 2013. In
addition to the implementation of
the agreed retail strategy, we will
provide structured support and
training for independent retailers
to help ensure excellence in
service delivery. (1, 4)*
• Carefully assess the various
regulatory and legal environment
with full engagement with the
Private Sector to ensure that we
do not impact employment e.g.
employment rights (4)*
• Support the construction sector
and help to meet our housing
needs by the end of 2013 by:
- bringing proposals for shared
equity before Tynwald,
- maintaining investment in public
sector housing,
- and encouraging more lenders
to enter our market. (4, 7)*
*(alignment to Statements of Intent
appear in brackets)
EMPLOYMENT TRENDS
16,000
14,000
12,000
Catering and Entertainment
10,000
Tourist Accommodation
8,000
Retail Distribution
6,000
Wholesale Distribution
4,000
Construction
2,000
0
2008-9
2009-10
2010-11
2011-12
Source: The Treasury Department, Isle of Man Government, Income Tax Division,
Employment & ITIP Returns various years
find out more: www.whereyoucan.im
9
Financial and
Professional
Services
Our Goal
Maintain and build a sustainable and
vibrant Financial and Professional Services
industry for the future.
Primary Objectives
• Secure existing employment in these
key sectors against a backdrop of global
consolidation and reform in financial
services.
• Enhance our competitive advantage
by working with regulators and other
government departments to drive new
economic opportunity.
• Produce and deliver a coordinated UK
regional and International business
development agenda with local
industry and international partners.
• Support local industry through the legal
and regulatory transitions posed by
Foreign Account Tax Compliance Act
(FATCA), EU and other changes.
FINANCIAL SERVICES NATIONAL INCOME 2010/11
11%
Banking
15%
Other Sectors
54%
9%
3%
5%
3%
10
Insurance
Other finance & business services
Legal and accountancy services
Corporate Servicer Providers
Other Professional Services
Environment
Financial and Professional Services
are a core engine room of the
economy with the Financial Services
element representing around 535% of
total National Income.
Recent proposed changes in
both structure of banking in the UK,
capital requirements for insurance
companies in Europe and automatic
exchange of information with the UK
and US have changed the dynamics
of the industry. This, combined
with changing public and political
perception on tax planning measures
means that a radical rethink will be
required in offshore financial and
professional services.
Despite difficult global times
the Isle of Man’s total employment
has been reasonably resilient, but
preparing for a different more
competitive landscape in the future is
a priority.
The Isle of Man has anticipated
this for a number of years and the
policy of diversification throughout
the economy leaves it a stronger
place than many.
Priorities*
• Expand Government’s business
development and other resources
in Financial Services to support
these vital sectors.
• Agree our future banking
framework between Government,
regulator and key stakeholders
to provide future growth
opportunities. (1,2,3)*
• Implement US and UK FATCA
working closely with the
businesses affected locally. (2, 3)*
• Consult and agree our approach
to Solvency II and communicate
effectively with the EU. (1, 2, 4)*
• Align the commercial
opportunities presented by
Alternative Investment Fund
Management Directive (AIFMD)
for the Funds Industry with
promotional activity along with a
supportive regulatory framework.
(1, 2, 4)*
• Expand and accelerate our
promotional programme in the
UK and overseas aligned to the
“Where You Can” principles. (2, 4,
8)*
• Support the evolution of local
industry to new business
opportunities via a series of
technical briefings and workshops.
(1)*
*(alignment to Statements of Intent
appear in brackets)
FINANCIAL & PROFESSIONAL SERVICES EMPLOYMENT
18,000
16,000
Other Professional Services
14,000
Corporate Service Providers
12,000
Legal & Accountancy Services
10,000
Information & Communication Technology
8,000
Other Finance and Business Services
6,000
Insurance
4,000
Banking
2,000
0
2008-9
2009-10
2010-11
Source: Department of Economic Affairs, Isle of Man Government, National Income Statistics 2010/11
5
Economic Affairs, National Income Statistics 2010/11
find out more: www.whereyoucan.im
11
Government
Resources to
support growth
The Government provides a wide range of support
to the economy, such as providing vital infrastructure,
excellent education to provide tomorrow’s skilled
workers and law and order such that the Isle of Man
has the lowest level of recorded crime in Europe. The
Government also provides systems of taxation and
regulation designed to aid good business. All of this is
intended to ensure the Isle of Man provides the right
environment for businesses and individuals to thrive.
In addition, the Government commits significant
resources directly to help existing businesses to grow
and to attract new investors. The Department of
Economic Development has 21 staff dedicated to
supporting economic growth, aided by additional
specialists engaged on a consultancy basis in key
areas, with many other staff from across Government
engaged on a part time basis. The Department is
currently implementing staff savings worth £300,000
annually which will be utilised to fund additional
business development resources in key sectors such
as Financial and Professional Services and e-Gaming.
This will boost efforts to grow the economy within
existing budgets.
Funding in direct support of economic growth
within the Department’s budget for 2013/14 totals
£13.1m excluding payroll costs and is broken down
as follows:
•
•
•
•
•
Marketing and promotion
£3.0m
Financial assistance grants
£4.0m
Visitor economy events
£3.3m
Vocational skills training
£2.2m
Private sector expertise in key growth areas £0.6m
In addition, the following balances are held in
Treasury reserves to support economic growth as and
when needed:
• Economic Development Fund
• Marketing Initiatives Fund
• Regeneration Fund
£16.1m
£5.8m
£6.1m
This allocation of substantial public funds
demonstrates that the Government remains
committed to the continued and sustainable growth
of the Isle of Man’s economy.
12
Competing Internationally
Our Goal
Environment
For the Isle of Man to be an
attractive jurisdiction for direct
foreign investment and to increase
overseas market opportunities for
existing Island businesses.
Like any other jurisdiction, the
Isle of Man trades and competes
in a very dynamic and constantly
changing global environment. As a
result, product demand and market
access changes constantly. The
Isle of Man has developed a three
tier country strategy which seeks
to target international business
development resources where they
are likely to generate the greatest
return. The UK is our only Tier 1
jurisdiction. China and the Middle
East as a region are Tier 2 and Russia
and India are Tier 3. Resource
allocation is proportionate to tier
ranking.
Primary Objectives
One of the Government’s
Statements of Intent is to forge new
sustainable relationships with other
countries and business partners.
As a result, our primary objectives
are to:
• Raise the profile of the Island’s
strongest propositions in key
target jurisdictions.
• Work closely with the private
sector in order to support their
efforts to develop new and
geographically diverse market
opportunities.
• Become increasingly less reliant
over time on the UK as a trading
partner.
Priorities*
• Expand the current Double
Taxation Agreements (DTAs) in
order to raise profile, standing
and market access (1,2,4)*
• Maintain and further develop
the business relations in target
jurisdictions proving our long
term commitment so as to
develop and build lasting
business relationships (1,2,4)*
• Work more closely with the
private sector in order to support
their efforts in promoting
products in overseas markets
(2,4)*
• Leverage our contacts in the
City of London as a channel to
developing new and diverse
overseas market opportunities
(2,4)*
• Ensure the work in promoting
the Isle of Man as a responsible
International Business Centre
is consistent and co-ordinated
with the wider Governmental
work of raising and improving the
international profile of the Island
(2,4)*
*(alignment to Statements of Intent
appear in brackets)
COUNTRY STRATEGY BUDGET ALLOCATION
Russia
India
8%
9%
47%
Middle East
China
36%
Department of Economic Development, Isle of Man Government, 2013 Budget
find out more: www.whereyoucan.im
13
A Single Brand:
‘Isle of Man.
Where you Can’
Our Goal
To promote the ‘can do’ attitude of the
Isle of Man as a world class international
business centre with a single unified message
in collaboration with industry and other
stakeholders.
Primary Objectives
• Raise awareness of the Isle of Man in
target markets around the world through a
unified and targeted marketing approach.
• Build database contacts to allow active
engagement in relevant direct marketing.
• Optimise press coverage and media
relations in target publications.
• Maximise social media engagement to
maximise impact and value.
14
ting
rke
Ma
We
bsi
te
ect
Dir
Netw
orking
ISLE OF MAN. WHERE YOU CAN
BE SURE OF INTERNATIONAL
BANKING EXCELLENCE
&
ts
en
v
E
PR
&
s
ow
Sh
Brochures
ISLE OF MAN. WHERE YOU CAN
GIVE YOUR AEROSPACE
BUSINESS ADDED THRUST
tising
Adver
Me
dia
Re
lea
se
s
Priorities*
• Full integration of promotional activities
will be necessary to ensure maximum
impact of marketing activities. (2, 4)*
ISLE OF MAN. WHERE YOU CAN
FIND A WINNING BASE FOR
YOUR E-GAMING BUSINESS
ISLE OF MAN. WHERE YOU CAN
PRECISION ENGINEER NEW
BUSINESS OPPORTUNITIES
• Promote consistent Isle of Man brand
with clear contact pathway to maximise
business development opportunities. (2, 3,
4)*
• Ensure full partnership with industry
for proposition development and
participation in promotional activities. (1,
2, 4, 9)*
ISLE OF MAN. WHERE YOU CAN
TAKE YOUR SPACE BUSINESS
OUT OF THIS WORLD
ISLE OF MAN. WHERE YOU CAN
FIND THE HIGHEST
REGULATORY STANDARDS
• Ensure that messages promote our
‘diversified economy’ and are anchored in
“Freedom to Flourish”/’Where You Can”.
(2, 4, 9)*
• Encourage the focus on relationship
management through the Department
of Economic Development Customer
Relationship Management system and
process. (2, 3, 4)*
• Integrated approach across consumer
and business audiences. (2, 4)*
• Provide thought leadership, articles,
content etc for posting throughout all
media. (2, 4)*
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brackets)
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15
Fiscal Policy: a Stable
Platform for Growth
Aims
On 16 January 2013, Tynwald
approved a new national tax strategy
for the period to the next general
election in 2016.
The overarching aims of this
strategy are to have an income tax
and national insurance regime which
contributes sustainable revenue to
the Isle of Man Government and
which, so far as possible:
• is fair
• supports economic development
• is easy to understand and to
comply with
• is simple to administer
• continues to build the Isle of Man’s
international reputation.
Commitments
Key features of the tax strategy
from the perspective of business and
investment are:
• no intention to introduce capital
gains or inheritance/death taxes
• maintain competitive personal
income tax rates as one of the
features making the Island an
attractive place to live and work
• maintain a competitive business
tax system in the Isle of Man to
support economic development
• retain the ‘0/10’ corporate income
tax system in the Isle of Man
• retain the current capital
allowances system, while
considering initiatives to support
further business investment
• simplify the tax system for
unincorporated businesses
• build a significant network of tax
co-operation agreements with
other countries.
In addition, a scheme providing
a two year ‘holiday’ from employer
National Insurance contributions
when businesses create new jobs has
been in place since April 2012.
How we will measure economic success
While there are many ways one
can measure economic success, there
are 4 key measures in answer to 2
fundamental questions:
Is our economy continuing
to Grow?
National Income (as measured by
GDP (Gross Domestic Product)) is the
global benchmark. The Island’s 30
years of unbroken growth is forecast to
continue:
• In 2012 our economy grew by 3%
in real terms compared to 1.4% in
the OECD.
16
• In 2013 growth is forecast to
increase to 4% compared to 1.4% in
the OECD.
• Growth thereafter is difficult to
anticipate in light of the global
economic backdrop, but we expect
the Island to continue to outperform the average for the world’s
developed economies.
Productivity (GDP per person of
working age) is also vital. If we want
to have financially rewarding jobs
and attract business investors, then
we must show our economy adds
considerably more value than its costs.
Successful economies continue to
grow productivity through investing
in both the workforce and capital.
Government will continue to invest
in education – especially vocational
education – and offer financial
assistance for capital investment in key
sectors to stimulate further productivity
improvements. Additionally, our stable
fiscal foundation of low taxes means
both individuals and businesses will
continue to retain the large majority of
the fruits of their labours.
Over the last 30 years, the Isle of
Man’s productivity has increased by
5% annually – among the best in
the developed world. While we are
unlikely to replicate that over the next
30 years, we expect to continue to
grow:
• In 2013 productivity is forecast to
increase by over 2.5%.
Is everyone in our community
sharing in our economic
success?
There are 2 key measures:
Average earnings shows whether
workers are sharing in economic
success.
• We will seek to continue to raise
private sector average earnings
in real terms over the rest of this
Government’s term in office. This
is dependent upon continued
growth in national income
and improved productivity,
which in turn are dependent on
age of 25. This represents a huge
social as well as economic and
fiscal cost. We have expanded
services to help individuals to find
jobs and have ambitious plans
for further support, such as social
firms. We are seeing real results
from our efforts. In 2012 our work
placement programme provided
placements for 150 young people
not in employment, education
or training (NEETs) of which 50%
gained employment following
participation in the programme.
ensuring the Isle of Man remains
competitive internationally.
• We will review the minimum wage
rate and social security benefits to
ensure that those individuals who
can work have a real incentive to
do so.
• We will measure and publish
household incomes data so
we can verify whether all in our
community are sharing in our
success.
Unemployment
• We will maintain the total
unemployment rate below 3%.
To compare, the current rate in the
OECD is 5.5%.
• We will halve long-term
unemployment by March 2015.
At the end of 2012, there were
almost 200 people who had been
unemployed for over a year, a
third of whom were under the
It is important that individuals
pursue the job opportunities that
are available locally. Where there
is evidence that they are failing to
do so, we will remind them of their
obligations and where appropriate
we will sanction their benefits.
This is fair to both the individuals
affected and the taxpayers who are
supporting them.
Closing Remarks
John Shimmin MHK
Minister for Economic Development
At various stages throughout our history, the Isle of Man has made
bold and decisive choices. I believe we are currently passing through an
historic period of change. I also believe this plan will ensure that the Isle
of Man is well-placed to navigate successfully through this period.
Our transformation over the last 30 years into a highly regarded
International Business Centre has brought us the quality of life we enjoy
today – and shows our potential. To continue to be successful, we
need to harness the strengths of the Island in our private sector, our
public sector and, indeed, all of our people.
We are now entrusted with shaping the Isle of Man’s future. I know I
and my colleagues in Council of Ministers intend to take the opportunity
in the same style and with the same determination as our predecessors.
I am confident that we can deliver positive growth, increased
employment opportunities and maintain a high standard of living for the
benefit of all.
So whatever the future brings us, I believe ‘Quocunque Jeceris Stabit’
– whichever way you throw us, we will stand.
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17
ISLE OF MAN.
WHERE YOU CAN
The Isle of Man offers such a broad
range of practical advantages, we believe
we set a new standard for international
business centres:
•Stable economy – over 25 years of
economic growth
•Effective relationship between public
and private sectors
•World-class regulatory environment
•Advanced telecoms and
power infrastructure
•World-class professional services
•Strong, direct links to the City of London
Department of Economic Development
St George’s Court, Upper Church Street
Douglas, Isle of Man IM1 1EX, British Isles
Tel: + 44 (0)1624 686400 (General Enquiries)
www.whereyoucan.im
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•Excellent quality of life