£5m of savings found at Isle of Wight council, but council tax still to rise

Although the Isle of Wight council have an underspend of close to £5,000,000 those in charge say they will still need to raise council tax next year, due to the cuts in government funding.

calculator and money

The Isle of Wight Council has made additional savings of £5 million this year — but council tax will still go up next April.

A report to the council’s scrutiny committee last night (Tuesday) said the overall revenue budget looked set to underspend by £2.9 million however, cabinet member for finance, Cllr Stuart Hutchinson, confirmed the final figure was closer to £5 million.

The revenue budget includes money spent on the floating bridge, children’s services, adult and social care — among other ongoing expenses.

Still have £16.5 million of savings to find
Leader of the Isle of Wight council, Cllr Dave Stewart, welcomed the news and said the savings had been made due to good management of council finances.

Cllr Stuart Hutchinson said:

“You might say we will not have to increase council tax at all next year. Well, yes we shall.

“We have still got £16.5 million to find over the next three years.

“An awful lot of what we do is actually quite technical, at the end of the day all that the public see is the increased cost of the council tax.”

Six per cent rise this year
Last year, council tax rose by six per cent, with the additional three per cent rise used to fund adult social care.

Cllr Hutchinson confirmed an additional three per cent rise would not take place next year.

He said:

“We don’t have that next year so we have to find that loss of £2.3 million from somewhere. That will be built into the £5.5m we are looking for.

“Every year the saving that you have to make gets more difficult because you have already made £75 million in savings which is a huge amount for a small council. That’s why we are having to re-engineer what we do.”


This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which OnTheWight is taking part in. Some additions by OnTheWight. Ed

Image: © Tax Rebate

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5 Comments on "£5m of savings found at Isle of Wight council, but council tax still to rise"

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Billy

Well there will be the all new, all singing, all dancing, enlarged executive team to pay for, before any savings, and no doubt more unexplained expensive ‘gagging orders’ to finance.

electrickery
Let’s be clear, as politicians love to say: “An awful lot of what we do is actually quite technical” = we aren’t inclined to explain; Cllr Hutchinson confirmed an additional three per cent rise would not take place next year – does he mean other than the 3% minimum already threatened? “[we] have already made £75 million in savings” – really? already already? “good management of council… Read more »
Phil Jordan
There’s much that can be said of course but I’ll concentrate on a couple of your questions. Firstly, the figure of £75m in cuts comes from the overall reduction in revenue budget (availability) since 2010. It derives from direct funding cuts from Government and increases costs set off against any extra income the Council may have made over the same period. Secondly, there was never the opportunity… Read more »
confidential

Does anyone at County Hall have any idea how to run this island and how much of our money they have already spent or actually need to spend?

electrickery

There is no sign of that.