A debate on Legislative Council amendments to the Local Government Bill has been postponed until the next sitting of the House of Keys.

Local authorities across the Isle of Man have warned that a controversial clause in the Bill could lead to significantly higher rates for households and businesses - but supporters say it will prevent town halls from ‘walking away’ from services.

Representatives from Peel, Arbory and Rushen, Michael and Onchan Commissioners were in the public gallery of the House of Keys chamber for what was expected to be the final reading of the Bill.

MHKs were due to consider amendments from the Legislative Council - but the whole of Tuesday afternoon was spent considering the clauses of another Bill.

The Local Government (Amendment) Bill will now be debated at the next Keys' next sitting on Tuesday January 27.

Focus of critics’ concerns is clause 5 which it is argued will allow central government to compel local authorities by regulation to deliver additional services, without guaranteed funding.

This clause was not in the original Bill but was added in as a House of Keys amendment by Ramsey MHK Lawrie Hooper in response to Bride Commissioners pulling out of the Northern Civic Amenity Site. Mr Hooper said he wanted to ensure a 'parity' of service provision in each constituency.

When the Bill came before LegCo in November evidence was received from more than a dozen Commissioners boards and Douglas City Council who all oppose the move.

MLCs subsequently voted to introduce new safeguards and protections. These aim to ensure local authorities are consulted before any such changes are made, and financial impact reports provided to show how functions will affect their budgets.

But this hasn’t gone far enough to allay concerns.

Infrastructure Minister Dr Michelle Haywood has moved that all the LegCo amendments to the Bill be approved.