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Minister commits to visit Isle of Wight over funding shortfall

As mentioned in last night’s live coverage of the Isle of Wight council Scrutiny meeting (catch up here), council leader, Jonathan Bacon spent a great deal of yesterday lobbying the government and Isle of Wight MP following what he’d referred to as a ‘snub’ from the government to pleas for further cash to save Island services.

Whilst authorities such as Oxfordshire and Surrey were confirmed to receive a share of an extra £415m from the government for 2016/17, the council were told yesterday (Tuesday) that the final settlement being voted on in Parliament today would not include any extra cash for the Isle of Wight. They would still have a budget gap of around £16m for 2016/17, as well as another £10m in 2017/18.

Emergency settlement agreed
However, there is now some good news to share, after it was revealed that the hard work of yesterday’s lobbying has paid off.

In Parliament this afternoon Isle of Wight Conservative MP, Andrew Turner spoke during Greg Clark’s motion on the Local Government Settlements.

Hear what Mr Turner said,

The moment Mr Turner sat down, his office issued a press release stating,

Andrew Turner, the Island’s MP, has secured agreement from the Rt Hon Greg Clark MP, Secretary of State for Communities and Local Government, that the forthcoming needs-based review will examine the unique costs that face the Island’s Council. During a meeting the Secretary of State agreed that it is nearly 10 years since the current formula was looked at thoroughly and that there is good reason to believe that the demographic pressures affecting particular areas, such as the growth in the elderly population, have affected different areas in different ways. The thorough review will assess what formula is used in future in a world in which all local government spending is funded by local resources, not central grant.

The Secretary of State said,

“Andrew and the Isle of Wight Council working together have made a strong case for the Island and I understand that the Island faces unique challenges. We inherited a funding formula from Labour and within the coalition we could not reach agreement to change it. This Conservative Government is determined to build a fair settlement for local government and the review will consider the costs associated with being separated from the mainland.

“I was also pleased to accept Andrew’s invitation to come down to the Isle of Wight, and meet with local leaders to continue the cross-party approach that has been taken so far.”

Andrew Turner said:

“At long last we have recognition that the current funding formula is unfair to the Island. I had positive and constructive discussions with Greg and he recognises that any new deal must address the costs of providing services here. We also need help with such issues as meeting the needs of the high number of elderly people living on the Island. Everybody realises that money is in short supply, but I have the Secretary of State’s assurances that he will find ways to help the Council stay afloat until the new formula is in place. The Government also understands that, as a small unitary authority, we do not have the same officer resources as some other Councils to make our financial case, and we are also being offered assistance with that. On that basis I will be supporting the Government this afternoon.”

Cllr Jonathan Bacon, Leader of the Isle of Wight Council, welcomed the news:

“I am pleased that it seems that Rt. Hon. Greg Clark recognises that the Island faces a unique set of circumstances and I hope that any consideration of the Island’s funding will ensure that we get a fair settlement relevant to our actual needs. This seems to be formal recognition, for the first time, that the Island is unique and that through no fault of our own we face higher costs than in other areas, however, like other councils we will still have to make difficult decisions this year and into the future.

“Time will tell and everything will turn on the actual figures which we wait to see, however, I would like to thank Andrew for the help he has given us in getting to this position and the hope that this gives us the basis for a secure financial future for the Isle of Wight and its residents.”

Steve Butler, spokesperson for Isle of Wight Trades Union Council says,

“It is just a case of wait and see, but the pressure on this Government needs to be kept up because the Island does not want empty promises.”

Former promises
At a meeting on 6th January, Parliamentary Under-Secretary of State for Local Government, Marcus Jones MP, told Isle of Wight Conservative MP, Andrew Turner, council leader Jonathan Bacon and senior officers that the government would take into consideration the Island’s unique situation when determining the final settlement.

He also stated that civil servants would visit the Isle of Wight to get a feel for the problems we face. To date no meeting has been arranged.

Whether the government follow through with the promises is yet to be seen.

Image: 42andpointless under CC BY 2.0