Business rates could rise in Braddan as project costs soar

Wed, 09 Aug 2023

Business rates could rise in Braddan as project costs soar and a "special rating district" may be implemented in the parish for businesses, in order to fund 'The Roundhouse', according to Andrew Jessopp, Braddan Commissioners.

After the announcement that the new leisure centre in Braddan, ‘The Roundhouse’ was to once again extend it’s budget and cost the rate payers an extra £3.4million, Energy FM spoke to Andrew Jessopp and Cassi McAllister, Centre Manager to find out the reasoning for the overspending and the need for the facility.

The Commissioners felt that as the area of Braddan has “expanded dramatically in terms of the built up area” and that it needed “something more than what a village hall can provide”.

McAllister said that “there will be something for everyone” and she emphasised that the facility will be focused around inclusion for the Island community.

She said: “I think there is bit of a misconception that we are just a sports hall. There is going to be loads more than that”.

The costs

According to Jessopp, after delays in starting the project “prices had gone up” by the time construction began.

The further borrowing is for extras that the Commissioners “hadn’t originally allowed for” in the original budget, such as an access road that “they might have to build”.

The Commissioner confirmed that cost will now be in the region of £10m. He explained that a lot of the price increases was due to Covid, Brexit and the Ukraine war – all of which made building materials go up in price.

Further delays in building materials and construction staff didn’t help matters for the project. Jessop explained that the Commissioners “expected to be open by now and having an income” but due to these delays and no income stream they have “been left with no choice but to seek further borrowing”.

Jessopp said that the funding for the project has been “entirely rate born” and Braddan residents rates were “raised last year” and are “potentially” due to increase in next year until there is a stream of income for the facility.

He defended the reasoning for the rate’s going up in Braddan saying “the whole purpose of rates is to provide services” and that the Commissioners are bringing something that “we can all be proud of”.

The Commissioners “don’t find it unreasonable” to put business rates up, as according to Jessopp, many of the businesses in the area have relocated to Braddan from Douglas, where their rates have “dropped dramatically” since relocating.

The Roundhouse was originally projected to be “more or less” cost neutral and not have a severe impact on the ratepayers. Jessopp remains hopeful that in the next five years “or maybe sooner” that will be the case for facility, once open.

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Videos

• Cassi McAllister - Centre Manager

  Cassi McAllister - Centre Manager Braddan Rundhouse Complex

• Andrew Jessopp - Braddan Commissioners

  Andrew Jessopp - Braddan Commissioners - talking about the project which has gone millions of pounds over budget and now poses a threat to business rates in the parish.