The Institute of Directors Isle of Man has published the results of its third Policy Voice survey, capturing the views of local business leaders on matters relating to the Island’s economy, government policy, and the 2025/26 Budget.
The findings highlight a growing sense of unease among IoD members, with 66% of respondents expressing pessimism about the Island’s economic prospects over the next 12 months. This marks a sharp decline from the October 2024 survey, which recorded 51% pessimism. Despite this, confidence in individual business performance remains stronger, with half of the respondents optimistic about their own organisations’ outlook.
There continues to be a strong feeling that the Government lacks understanding of the business environment and how its policies truly impact it: 70% felt that the government has a lack of understanding, up from 60% in October 2024.
Only one in ten respondents felt that there is an understanding, helped by the outreach from the Department of Enterprise’s various agencies.
The survey also identified key issues for businesses. Nearly 60% of respondents cited employee skills gaps and overall economic conditions as their most pressing issues, followed by air and sea links and the costs of compliance.
Concerns were also raised about rising government costs and an expanding public sector headcount. An overwhelming 91% of respondents agreed that the public sector is too large, with calls for efficiency measures and meaningful cost control across all departments.
Another strong theme emerging from the results is the call for government reform. 85% support a significant reduction in the Island’s 21 local authorities. Additionally, there is strong backing for electoral reform, with members suggesting an Island-wide voting system to increase voter engagement and focus debate on national and international issues.
Steve Billinghurst (pictured), Chair of IoD Isle of Man, said: “These results provide a clear message – while businesses remain resilient, there is growing frustration with the scale and structure of government and a perceived lack of focus on economic growth. Our members want to see change that will make the Isle of Man more competitive, efficient, and attractive for investment. Ahead of the 2026 General Election, we will be articulating how we believe this can be best achieved.
“We will continue to engage in a constructive dialogue with the key individuals within the Isle of Man Government and will use the next Policy Voice survey to shape our 2026 Election Manifesto.”
