Treasury has said the Isle of Man must commit to a multi‑year capital programme to stabilise construction costs and support the Island’s contracting sector.
It follows the publication of an interim report into rising pressures on major projects.
The review, commissioned with approval from the Brownfield Regeneration Steering Group, sets out the scale of the challenge ahead of a full report later this year.
It identifies construction costs on the Island as around 18% above the UK average, with tender prices forecast to rise by 7.5% in both 2026 and 2027.
Capital Plan
Treasury Minister Chris Thomas MHK said the findings provide “an important evidence base for understanding the challenges facing regeneration and development on the Isle of Man,” adding that Government must take a more structured approach to capital delivery.
He said: “One such challenge for Government is that it needs to specify and deliver a multi-year capital programme… vital not only for delivering homes, public facilities and infrastructure, but also for supporting local economic activity, sustaining jobs and creating opportunities for people on-island.”
The interim report highlights several structural pressures that Treasury says must be addressed through long‑term planning: reliance on imported materials, rising fuel and transport costs, labour shortages, and delays in the planning process.
It notes that “construction costs on the Island have increased significantly… and are now estimated to be approximately 18% above the UK national average.”
Policy Decisions
In response to the detailed findings, the Brownfield Regeneration Steering Group has committed to developing policy options for the next administration.
The final report will examine the future role of the Manx Development Corporation and outline potential government interventions and support schemes.
The Department for Enterprise will also bring forward proposals for a further round of the Island Infrastructure Scheme, aimed at supporting viability and unlocking stalled regeneration sites.
