Further Council cuts inevitable following Government Spending Review

The council are anticipating a funding gap of £24,000,000 over the next three financial years.

An Axe:

If you watch, read or listen to the national news, you’ll be well aware that yesterday (Wednesday 26th June), George Osborne, the Chancellor of the Exchequer, announced his latest Spending Review.

As expected, government funding for local authorities will be reduced by 10% in the year 2015/16. The early indications are that the council will need to manage a budget gap of £24m over the next three years.

Councillor Jonathan Gilbey, Cabinet Member for Resources for the Isle of Wight Council, said

“The council faces significant budget challenges over the next few years. The resources it receives from Government have been significantly reduced – some £21m on-going – since 2010-11, with at least a further £6m reduction in grants already announced for the next financial year 2014-15. This, coupled with increased need for services, particularly in children’s and adult social care means that, even before today’s announcement, the council faces an estimated total revenue budget gap of some £24m over the next three financial years.

“Yesterday’s announcement, which is still being studied in detail, just confirms the enormity of the financial challenge the Isle of Wight Council faces.

“The council has already delivered significant on-going efficiencies and savings of £34m since 2010-11, thanks in part to the support of voluntary and community groups and town and parish councils who have taken on the delivery of some services, but it now faces some very difficult decisions on how it allocates its remaining resources and where it will have to make further savings.”

Isle of Wight Council Leader, Councillor Ian Stephens said,

“We are determined, through a root and branch review of all services and through consultation with the community, to ensure that the council meets these challenges and that the services it is able to deliver are relevant, effective and affordable.”

Image: Adam Baker under CC BY 2.0

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Thursday, 27th June, 2013 8:54am

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ShortURL: http://wig.ht/2aWd

Filed under: Budget Cuts, Island-wide, Isle of Wight Council, Isle of Wight News, Top story

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10 Comments

  1. Tidy Turner's comment is rated +1 Vote +1 Vote -1

    27.Jun.2013 10:09am

    As long as we don’t turn belly up without some kind of protest!!!

    Reply
  2. Thomas's comment is rated -1 Vote +1 Vote -1

    27.Jun.2013 11:59am

    The announcement of the government’s infrastructure plans came a day after Wednesday’s Spending Review, in which £11.5bn of cuts to Whitehall departments were announced.

    The first £50bn will be committed to infrastructure projects starting in 2015-16 and the rest for 2016-20.

    How much of this will directly affect the isle of Wight?

    The main funding commitments include:

    £3bn to build 165,000 new affordable homes
    £28bn for road improvements, including £10bn for essential maintenance
    £10bn to clear “backlog” of school building repairs
    850 miles of railway to be electrified as part of £30bn rail investment
    £250m for extended super-fast broadband to rural areas
    £370m for upgrading flood defences
    £150m for health research including into dementia
    £100m for a new prison in Wales

    What are we going to say about it?

    Reply
  3. Hunter's comment is rated -6 Vote +1 Vote -1

    27.Jun.2013 1:32pm

    Vote UKIP !
    And on a local level , stop subsidising southern vectis buses with tax payers money , before iw council cut bin collections or services .
    and find an investor or grant to re instate the iow rail network ! This will promote competition in public transport which the island desperately needs .
    A steam service in summer would be a huge tourist attraction for generations well into the future

    Reply
  4. Bystander's comment is rated +6 Vote +1 Vote -1

    27.Jun.2013 8:05pm

    How much are we paying Stuart Love and his cronies? and how much can we save by drastically cutting their salaries as it looks like we cant afford them any longer

    Reply
  5. watching you's comment is rated +3 Vote +1 Vote -1

    27.Jun.2013 8:22pm

    Ask front line staff for a list of names of people surplus to requirements, I’d bet my last buck the same names would come up time and time again.

    Reply
  6. Transparency's comment is rated +2 Vote +1 Vote -1

    27.Jun.2013 8:25pm

  7. mittromneylovesiow's comment is rated +2 Vote +1 Vote -1

    27.Jun.2013 8:30pm

    Over the last two years a steady stream of council staff have been made redundant (in the hundreds and that doesn’t include teachers and support staff). It’s the same for the police which is why previous comments in other threads about damage to cars being ignored when witnesses were present are coming to light. There ain’t enough staff to go round. This will only get worse. In a few years time you’ll only be able to get the police out if you’re being murdered.
    Some people argue that council staff are lazy and deserve to go but those very staff spend money in the local community – less than they used to because as with every other employee they have less money to spend. Less spending means smaller business go under; it’s a vicious circle. You also have good decent staff leaving because they know the writing’s on the wall and they’re hard to replace. Their departure puts more strain on services already stretched.

    Now we have additional savings to find. From where? Jobs of course. Not from the top echolons as they need to make these difficult decisions but from the coal face once again. BBC Four played Ian Hislop’s documentary on Beeching the other night. Mr Burbage is a modern day equivalent. Some say he’s doing a great job and that his salary is fair but you would need to ask the staff that have departed whether they agree.

    So I’m sure in the next few years we’ll send our new aircraft carriers off to war with no planes on; return our injured troops to hospitals with no staff to care for them, educate our children in a privatized academy with no accountability or books due to a lack of money, whilst listening to spin and PR about how it’s all improving. And not one person will stand up to the wholesale destruction being inflicted. The railways are long gone these days but are still missed. Will it be the same for the services on the Island?

    Reply
  8. BRIAN's comment is rated +2 Vote +1 Vote -1

    28.Jun.2013 8:33am

    Rambling? Only if you have a low concentration threshold and can’t read words of 2 or more syllables, Bayboy.

    Reply
  9. iain mckie's comment not rated yet. Add your vote Vote +1 Vote -1

    28.Jun.2013 9:12am

    According to the Tax Payers Alliance the pay gap between public and private sector (using their criteria of parallel skills, which I admit would require scrutiny) amounts to £53 billion. They also estimate that £20 billion is lost through public sector fraud, a further £15 billion is wasted through inefficient public sector procurement, and another £10 billion goes on outsourcing leakage. In addition £5 billion goes in benefit payments to people on over £100,000 a year. The total savings they have identified amount to £120 billion a year. http://www.taxpayersalliance.com/bbgw2013.pdf. Now, I am not naive enough to think that all these savings are immediately or fully realisable, but the sums are so eye watering that they deserve out attention

    Reply

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