The Isle of Man Government has announced significant changes to its procurement policies aimed at supporting local businesses.
These changes will allow the Government to favour Isle of Man-based businesses in contract awards.
The Council of Ministers agreed to reserve contracts below the World Trade Organisation (WTO) tender threshold for Isle of Man-based businesses.
Under this new policy, up to 94% of Government spending opportunities, potentially £50 million annually, could be directed into the local economy. This move is a positive outcome of Brexit, allowing the Isle of Man to support its own businesses, something that was not possible under previous EU procurement rules.
At its June sitting Tynwald approved an Order that will ensure that reserving contracts for local businesses does not constitute an anti-competitive practice.
Treasury Minister, Alex Allinson MHK (pictured), said: “This policy is a significant step in supporting local businesses and our economy. For the first time in nearly fifty years, we can actively favour local businesses in an open and legitimate manner.
“By directing even more government spending into the Isle of Man economy, we are fostering a more robust and self-sustaining economic environment. We believe this will provide local businesses with greater opportunities and help strengthen our community.”
