The unit would have housed 32 elderly people
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A planned facility to house elderly mentally infirm people in the Isle of Man has been axed because of budget pressures, the government says.
The Department of Health and Social Security (DHSS) wanted to build the 32-bed unit in south Douglas.
On Tuesday, DHSS Minister Eddie Teare said the unit would add a "stressful burden" to the department's finances.
Mr Teare did not reveal whether plans for the unit would be revived at a later date.
"The department is committed to providing the best quality service and care to anybody in need," he said.
"However, it is vital to the long-term provision and development of all services that the department operates within its allocated budget."