Residents in Castletown are being hit with a rate increase.

The commissioners are hiking the town rate by nine percent and the refuse rate by 8.9 percent.

This comes after Arbory and Rushen also increased its rates by 7.4 per cent last week.

The decision for the inflation rate increase in the ancient capital has been made, the authority says, after ‘careful deliberation’.

In a statement, Castletown Town Commissioners said: 'The town’s general revenue reserves are not at a level that provide sufficient comfort to draw upon to mitigate rate increases while maintaining services.

'As a collective board we recognise our duty to ensure the town maintains a robust fiscal position as we prepare to hand the baton to the next administration.

'As we await planning determinations for our works yard and old fire station, we focus on preparing our own works operations for a probable relocation in the near future.'

The extra money brought in from upping the rates will cover increased staffing requirements at weekends, and for events, and will be used for ‘likely’ public sector pay awards. This is in addition to an ‘increased interest burden’ from historical capital schemes.

Chairman Jamie Horton added: 'From speaking to my counterparts, local authorities across the island continue to face an unprecedented challenge to their financial sustainability.

'A comprehensive, long-term plan is urgently needed to ensure adequate funding for essential local services both in the immediate future and for years to come.

'We cannot continue to burden our own ratepayers to provide services to others. As a board we are exploring collaborative options with other authorities.

'I would urge our national politicians to address rate reform and ensure that all the Island residents contribute to services in a more equitable manner.'

Castletown Commissioners add they are also planning to review how they charge businesses in the town for commercial waste disposal saying waste management charges ‘continue to escalate'.