The authority says the decisions has been 'difficult'
Castletown Commissioners has increased its rates for the next financial year.
The town rate currently sits at 312 pence but this will increase to 356 pence in the pound.
Chair Jamie Horton says 'inflationary pressures' have led the board to make the 'difficult' decision to increase the rates.
In a statement he says: “No local authority wishes to announce significant rate increases, however it is a matter of public record that we underestimated the level of financial challenge which awaited us in 2022.
“As detailed in our annual accounts, the town operated at a significant deficit to the rates collected for the year ended 31st March 2022 and has continued to do so into the current financial year.
“Intervention is now required to address the deficit without further depleting our general reserve. We must also make additional provision for increases to costs in the forthcoming municipal year, a number of which remain undefined.
“The significant inflationary pressures experienced have led the board to make difficult decisions.
“We have been united in our view that whilst an clear option, we do not wish to significantly cut spending on services and support for events within the town which will provide a saving now but will be to the detriment of residents and visitors at a later date.”
The local authority is also increasing its refuse levy by £1 a week, which increases the charge to £202 and this is expected to cover refuse and sanitation costs.
It will also be changing the way they deliver services with ‘immediate effect’ to save the authority £19,000 over the next year.