The battle over the Local Authority Amendment Bill is intensifying, with every authority on the island still united against the Department of Infrastructure’s controversial “Clause 5”.
Despite suggested amendments from the Legislative Council (LegCo), the Department’s minister has rejected key safeguards, including a sunset clause designed to protect ratepayers from unfunded service transfers.
Speaking to Manx.News, the Chair of Arbory Commissioners Kirrie Jenkins confirmed that the collective opposition remains firm. “All local authorities remain of the view that Clause 5 is dangerous and should be removed,” she said.
Rate Payers Burden
The clause, as drafted, would allow central government to transfer services to local authorities without guaranteed funding. Mrs Jenkins explained that this would shift the burden from taxation onto local rates, a system that is not income‑assessed and therefore disproportionately impacts those on fixed or low incomes.
“Consultation is not consent” – Kirrie Jenkins
LegCo’s attempt to insert a sunset clause was intended to provide accountability by forcing a review of any transfers to assess their effectiveness and impact. The minister Dr Michelle Haywood MHK, has objected to this safeguard, arguing that it presumes local authorities will encounter problems. Mrs Jenkins dismissed that reasoning, insisting that the real issue is the risk of services being offloaded without proper consultation or funding. “Consultation is not consent,” she warned, pointing to recent examples where strategies were published without meaningful dialogue with local authorities.
Unity
The unity of the island’s authorities has been striking. In 2025, for the first time, every local authority gave evidence together at LegCo, all voicing concern about Clause 5. Mrs Jenkins described this as unprecedented and urged members of the House of Keys to listen carefully when the bill returns next week.
While some amendments have softened certain aspects of the clause, the consensus remains that the best outcome would be its complete removal. If that is not achieved, Mrs Jenkins stressed that protections for local democracy must be strengthened as much as possible.
Offloading Costs Through The Back Door
Underlying the dispute is a broader fear that the Department of Infrastructure is attempting local authority reform “through the back door,” offloading costs while retaining revenue. Mrs Jenkins likened the approach to “taking a sledgehammer to crack a nut,” arguing that genuine dialogue is needed rather than unilateral imposition. She acknowledged that both central and local government face financial pressures, but insisted that collaboration, not coercion, is the way forward.
With the House of Keys set to debate the bill this week, the stage is set for a high‑stakes confrontation.
Local authorities are appealing once more for Clause 5 to be scrapped, or at the very least, for safeguards like the sunset clause to be retained. As Jenkins put it, “We want to work collaboratively. Listen to the local authorities. Protect local democracy. Protect the vulnerable.”
What is “Clause 5”?
Proposed Clause 5 of the Isle of Man’s Local Government Amendment Bill grants the Department of Infrastructure (DoI) power to impose new functions on local authorities without automatically providing funding, a move initially met with concern from councils but later modified with safeguards like mandatory consultation and financial impact assessments by the Legislative Council to improve transparency and governance.
Key Aspects of Proposed Clause 5:
- Department of Infrastructure Powers: Gives the DoI the authority to mandate new duties or functions for local authorities.
- Funding Concerns: Local authorities worried about being forced to undertake new tasks without adequate financial support, a major point of contention.
- Legislative Council Amendments: Introduced significant changes to mitigate risks:
- Mandatory Consultation: The DoI must consult the local authority before imposing a new function.
- Financial Impact Assessments: Required to assess the financial implications of any new function.
- Appointed Day Order: A new function wouldn’t take immediate effect, requiring a specific order.
- Review Period: Proposed a review of the clause after three years.
- Purpose: Aims to modernise local government, improve governance, and enhance openness and transparency, aligning with recommendations from a Tynwald select committee.
The Bill, after scrutiny in the Legislative Council, is returning to the House of Keys this week for consideration of these significant amendments
Also Watch
Earlier in the year, three local authorities spoke to Manx.News when the controversial clause was first proposed. Christine Moughtin – Chair of Peel Town Commissioners, Alison Lynch – Marown Commissioner and Ivan Burton – Bride Commissioner gave their views on the proposals.
At the Government Conference in September, the leader of Douglas City Council spoke to Manx.News. Cllr. Devon Watson also raised concerns about the impact the proposals would have on the island’s largest authority and its rate payers.
