Douglas Council puts projects on hold due to inflation

Rates in Douglas will go up by 8.76% in April

The local authority for the Isle of Man's capital will put two projects on hold as inflation drives a hike in rates.

Douglas Council unanimously voted through a 8.76% rate increase at its 2023-24 budget meeting on Tuesday.

Leader Claire Wells said the rise was "unavoidable" due to "exceptionally volatile rates of inflation".

It means a skatepark development for Noble's Park and improvements to Summerhill Glen have been pushed back.

According to the council, the owner of an average three-bedroom house in Douglas will pay roughly £590 per year from April - an increase of 91p per week.

Ms Wells said the island's largest local authority was faced with "rising inflation, soaring energy prices and a considerable increase in interest rates".

The council has therefore decided to focus spending on essential services and maintenance schemes, she added.

Council leader Clare Wells said rate increases could have reached "double figures"

A total of £2.9m has been earmarked for a new civic amenity site due to open later this year, which is being developed alongside other local authorities in the east of the island.

A further £2.9m will be invested on improvement works to Douglas Promenade, which includes replacing a playground damaged by Storm Barra in 2021.

The council has also set aside £13.5m for ongoing social housing developments, such as the development of 49 two-bedroom apartments in Willaston.

Ms Wells said that early predictions could have seen the rates increase to "double figures" but council members and officers had worked hard to keep the increase as "low as possible".

Planned £114,000 improvement works at Summerhill Glen have been postponed to the local authority's 2024-2025 budget.

A skatepark development, set to cost £250,000, has also been put on hold until the next financial year.

Councillor Wells said the rate increase of 8.76% had been set against a series of financial pressures Douglas Council have "no control over" so savings had to be made on "nice-to-haves".