Rate increases next April won't be limited to four per cent, after all.

On Talking Heads today, DoLGE chief executive Ken Kinrade confirmed his department had decided against the move, after canvassing the views of the Island's 24 local authorities.

The general feeling was that while households were facing difficult times, and excessive rises should be avoided, rate increases were stronly influenced by inflation-linked pay awards, which were expected to be above four per cent.

Mr Kinrade (pictured) explained DoLGE's decision live on Manx Radio:

"Bringing you right up to date is the fact that the department has decided now not to issue the four per cent maximum rate order.

"Effectively what we have done is say we would hope that local authorities would attempt to restrict or restrain any increases they were going to put on the rates, bearing in mind the difficult circumstances.

"But we recognise there will be schemes, and I think Councillor Christian said this morning that they would look to put off schemes that perhaps were only desirable and not essential."