Manx Radio says it needs an increase in public funding to maintain current levels of service.

The call comes as the station's annual report shows Manx Radio made a loss of well over ?25,000 in the last financial year.

In his chairman's statement, David North says subvention funding has steadily reduced over the past three years and, unless the situation's reversed, Manx Radio will have to cut back on the wide-ranging public service it currently offers.

In Manx Radio's annual report which goes to Tynwald next week, David North says funding from both the public purse and advertising revenues have declined in recent years.

Despite cutbacks, which has included shedding staff, Mr North says it's disappointing the company has to declare a loss of ?25,800 for 2010/11.

He says Manx Radio management performs a tight balancing act, seeking commerical revenue and controlling costs while delivering programming which is more than 98 per cent locally-produced.

He concludes the company's lived within a reduced budget for long enough and calls on government to restore the previously agreed funding, as approved by Tynwald, in the immediate future.