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Local authorities make last appeal against controversial local government legislation

Tuesday, 13 January 2026 06:47

By Emma Draper

Picture credit: Manx Radio

New bill could impact low-income households the most says Andreas Commissioners

Local authorities across the Island are making a final appeal to MHKs ahead of today's debate in the House of Keys to scrap a 'controversial' clause in the new Local Government Amendment Bill. 

In a post on social media, Port St Mary Commissioners said if approved there would be 'untold' rates increases for residents which would most affect fixed and low-income households.

Andreas Commissioners says it would allow 'major' decisions about cost to be made without a full parliamentary debate as well as 'undermining' local democracy. 

The local authority added: "Local authorities say this is not the level of scrutiny you would expect for a change that could affect household bills and note that government guidance from the Attorney General’s Chambers highlights the importance of robust scrutiny where decisions may have financial consequences for the public."

Concerns raised by a number of commissioners that the rates could rise to pay for services 'imposed' by regulation rather than by local choice. 

Local authorities believe this creates a real risk that services decided centrally will be paid for locally through rates.

Chair of Onchan Commissioners Anthony Allen says the clause is 'potentially dangerous' due to the power it gives the Department of Infrastructure.
He adds that it could 'negatively impact' residents as the Department of Infrastructure could retain its revenue from taxes while transferring responsibilities meaning ratepayers will be paying twice for the same services.

Mr Allen also says: "The manner in which this clause was introduced into the bill has meant that members of the public have not had an opportunity to consider it or have any input, even though they are the most important stakeholders.

"It appears as though this matter has been made into a political tool regarding local authority reforms, and that local authorities are opposed to this. This matter is not about local authorities resisting reform; it is simply about protecting local democracy and preventing unfair charging for services.

"It is hoped that the Members of the House of Keys consider the members of the public, especially those most vulnerable, when casting their votes."

Chair of the Isle of Man Municipal Association Douglas Councillor Peter Washington says the committee is open for dialogue with the DOI Minister to discuss the matter and the bill should be paused until issues around clause five are resolved.

The clause, if approved, would allow government to require local authorities to deliver services by regulation without guaranteed funding.

It was introduced by Ramsey MHK Lawrie Hooper in January 2025, who at the time said he introduced this amendment because he wanted to ensure there is 'parity' of service provision in each constituency.  

Following an evidence session organised by the Legislative Council, which saw 16 (out of 21) authorities provide their view on the proposed bill and clause a number of 'safeguards' were added to the piece of legislation. 

These included a mandatory consultation with affected local authorities, financial impact reports which would provide details about how much a new function could affect budgets and a review of the clause after three years. 

Other parts of the bill are seen as much needed and include updating members expenses, interests and minute taking.

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