Government prepared for ‘targeted response’ if Middle East conflict stretches on

Treasury Minister gives economic update and rebuffs claims government isn't being proactive

Government is prepared for a ‘targeted response’ to cost-of-living pressures caused by the conflict in the Middle East.

That's from the treasury minister, who has told Tynwald that government 'continues to monitor energy prices and supply closely' and is 'preparing for uncertainty that may last for many months’.

The economic update from Chris Thomas came on the day that the UK's energy secretary announced plans to cut electricity bills there by weakening the link with gas prices.

Ed Miliband insists the UK needs to be 'faster' on adopting renewables rather than drilling in the North Sea, especially in light of the war in the Middle East.

But here measures appeared less concrete:

Minister Thomas told the Island's parliament that 'if further intervention is required, responses will be precise, targeted and evidence-based, aligned with broader economic and anti-poverty strategies'.

He said: "Effectiveness and fiscal responsibility remain critical given the long-term uncertainties we face, and the importance of maintaining a sustainable public purse. However, this government has already acted to protect households and the wider economy. 

"As honourable members will note, at the start of the new tax year, the increased personal allowance approved in the February 26-27 Budget is now in effect. 

"This allows almost all taxpaying households to keep more of what they earn. 

"Our existing energy framework is also helping. Gas market regulation and Manx Utilities' electricity pricing and hedging strategies are working effectively, providing both protection now and reassurance for the future. 

"Regular liaison with oil companies has been re-established, building on arrangements put in place during the 2022 energy crisis."

He added that the Council of Ministers' third annual report on poverty measures will shortly be laid before the May sitting of Tynwald, a document that he described as demonstrating 'the scale of government support for those facing hardship'.

But members in the chamber questioned whether any new support measures are being developed, particularly in anticipation of the conflict stretching on through the summer months.

Ramsey MHK Lawrie Hooper for example stated that 'the support schemes that the Minister mentioned, things like the Energy Efficiency Scheme, that was 2022. That isn't new. There is nothing on the table helping people today with additional costs', and Rushen MHK Michelle Haywood added: "I think we could sum up the statement today on a basis of... 'sit and watch events unfold and the sunshine buys us time on this one'. 

The statement from the Minister notes that the elevated prices are likely to persist into winter and therefore I think there's an urgent need to be planning for that, now." 

Rebuffing the claims work isn't being done to protect Manx households, Mr Thomas said what he presented in the chamber evidences that the Island is 'prepared for a targeted response'.

He said: "This summer is one matter, the autumn and the winter and beyond are other matters, and we have in place the structures to enable us to use public resources and public policy to the best effect to help us all deal with whatever comes."