The long-awaited Balthane roundabout is now not expected to be built until the 2027-28 financial year, with costs rising to more than £2 million as delays continue over funding and contaminated land works.

Infrastructure Minister Tim Crookall confirmed in the House of Keys on Tuesday that the scheme has increased in cost by around £600,000 since it was first approved in 2021, taking the overall price to £2.1 million.

He also told members that a further £400,000 will be needed to manage coal tar at Turkeylands Quarry, where planning approval has now been granted for temporary storage and processing for use across a range of Department of Infrastructure projects.

However, no construction contract can be put out to tender until the department secures the additional funding, meaning further delays are expected before work can begin on site.

Mr Crookall also said financial regulations prevented the project from progressing without approved funding in place and confirmed the timetable had now slipped significantly.

‘The department will now create a business case to secure the additional money required,’ he said. ‘It is too soon to say when that project will be delivered on site, but it is now likely to be in the 2027-28 financial year.’

Back in February, Mr Crookall said he intended the roundabout to be fully operational by spring 2027.

‘We had planned to start works in September this year, but that is now not going to happen,’ he added.

Mr Crookall warned that delays were continuing to push up costs, not only for this scheme - now put at £2.1 million - but for other projects involving coal tar contamination.

‘The longer we think about these things and deliberate and try and get licences to get rid of coal tar, the more expensive it’s going to get,’ he said.

‘We’ve got around 45 schemes lined up with coal tar in, and they’re going to be so much more expensive. The chances are, if we’re not careful, the prices will increase from the price I’ve just given.

‘I would absolutely love to bring this scheme forward, and I’m disappointed we can’t do it. We’re working as fast as we can with regards to getting licences and planning permissions.’

Members also asked whether residents and businesses in the Balthane area would be consulted again following earlier concerns about the proposals, with the minister confirming that further consultation would take place before construction begins.

It was previously confirmed that, during construction, a through route will be maintained for traffic heading north from Castletown and the south, past the airport. A diversion route will then be put in place for traffic heading south, including to the airport.

Traffic will be diverted at the roundabout by the Whitestone pub in Ballasalla along Bridge Road, Cross Fourways, along the A3 and then back onto the A5 at Castletown Corner.

A temporary entrance into Balthane from the new bypass road is also planned to maintain access to more than 200 businesses and storage units on the industrial estate.