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Douglas ratepayers will have to pay 2.1% more in the coming financial year.
The new rate is set at 395p in the pound and is largely down to the reduction in waste disposal subsidy, says Douglas Borough Council.
Council Leader David Christian says the new budget also incorporates projects for growth, rather than just managing the extra waste costs.
He says the time may be coming in the near future when the council has to look at reducing some services:
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