Capital's 5% rate rise 'out of council's control'

People living in the Manx capital are facing a rate rise of 5% largely down to factors "outside our control", the local authority leader has said.

Douglas Councillor Claire Wells presented the budget for the 2025-26 financial year at a special meeting on Friday.

She said the increase in rates was largely down to external factors, including increases in charges.

But she said there would be a clear focus for the authority going forward, with more than £12m in the funding earmarked for capital projects to be spent on housing.

Speaking to the Local Democracy Reporting Service, Wells said: "Ultimately the rates have to go up in order for us to continue providing the service that we have to provide.

"More than 3.7% of the increase is down to charges either imposed on us or outside our control."

"This includes sharp increases in bank charges, insurance costs and audit fees, all of which have been experienced this year and are unavoidable."

While the biggest factors influencing the budget were staffing costs and community projects, Wells said a continued focus on housing was at the heart of it.

She said: "Of the £16.4 million earmarked for capital projects in the next financial year, £12.4 million of that is for housing, the commitment is clear."

Other projects supported by the council included plans to revamp three of the seafront gardens.

At a cost of £1.47m, the council leader said it was "a key initiative to regenerate the area" as Douglas Promenade was the "shop window in the capital for anyone arriving by sea" as well as "an important public space".

Wells said it was "a balanced and responsible annual budget, which provides fairly for the community".

It is the final budget of the current council, with the all-island local authority election scheduled to take place in April.

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