An interim report examining the impact of rising costs on major construction projects has today been published on the Isle of Man Government website.
Treasury – with the approval of the Brownfield Regeneration Steering Group – commissioned the review to consider the impact and scale of the challenge and to lay out how to address it. A full report is set to be delivered later in the year.
The first part of the review has identified that construction costs on the Isle of Man are now around 18% above the UK national average, and comparable with Outer London. Tender prices are forecast to rise by a further 7.5% in both 2026 and 2027, outpacing the UK.
The Island’s reliance on imported materials was also raised as a key problem, along with a shortage of skilled construction workers and delays in the planning process.
In response to the detailed findings, the Brownfield Regeneration Steering Group has committed to continuing the development of policy options for consideration by the next administration.
This final report will cover the future function and role of the Manx Development Corporation and its operating model, and the range of government interventions and support policies.
Treasury Minister Chris Thomas MHK said:
‘This interim review provides an important evidence base for understanding the challenges facing regeneration and development on the Isle of Man.
‘One such challenge for Government is that it needs to specify and deliver a multi-year capital programme. This is 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.
‘If we are to retain and grow the capacity of the local construction sector, we need businesses to have the confidence to invest for the future.’
