Douglas Council leader David Christian has delivered a budget which he said combined 'prudence with investment'.

At the annual budgetry meeting today (Wednesday), the rate for the coming financial year was set at 387 pence, which he called 'a modest increase' from last year's figure of 385.

Councillor Christian said the increase was necessary because the Council needed to find an extra ?420,000 because of inflationary rises and additional costs imposed by government.

The new rate equates to about ?450 for a typical three-bedroom semi-detached property, and the annual increase to ?2.30, or four pence a week.

Councillor Christian said that, in seting the rate, the Council was sensitive to the current economic climate, locally, nationally and globally.

But he repeated a point he made on Manx Radio earlier this month, that generally the Council applauded measures taken by central government to rebalance its books.

Councillor Christian said despite the testing times the Council continued to invest in the development of the town, through prudent financial management and close partnership working.

Among other things, ?2 million has been committed to the regeneration of the town centre, specifically for lighting improvements, and new information and waymarking signage.

Public conveniences on the promenade are to be upgraded at a cost of ?200,000 and barrier systems are to be installed for payment at the Council's three car parks.

The biggest investmet is in the area of housing, with a ?17.6 million, three-phase redevelopment of Upper Pulrose beginning this month, and a ?2 million extension of Hanover House running ahead of schedule.

The Council's public sector housing stock continues to be upgraded, including the replacement of around 1,600 external doors.