A crucial County Hall meeting will take place on Wednesday where Isle of Wight councillors will vote on the 2025/26 budget and a 4.99 per cent council tax rise.
Full council is due to decide on proposals including £1.5 million in savings, an £11.1 million increase in adult social care spending, £4.7 million extra for children’s services and new capital investment worth £13 million.
A bleak financial picture
A budget report to be presented to the chamber paints a bleak financial picture – ‘the pace at which costs rise is not matched by the pace at which income and funding rise’.
It says,
“The budget setting process continues to be as challenging as ever. Local government continues to suffer from exceptional levels of both price rises and demand increases across social care and housing which is destabilising the sector to the extent that many more councils are seeking Exceptional Financial Support from government through the approval to borrow to fund their deficits and to increase their council taxes beyond the referendum thresholds.
“Additional spending of £15.8 million in adult social care and children’s services is required next year simply to maintain services at existing levels.
“It makes some provision for the National Living Wage increase of 6.7 per cent and the impact of changes to the Employer’s National Insurance rates and thresholds.
“The increase in the council tax of 4.99 per cent and a savings requirement of £1.5 million will avoid the council dropping below the minimum level of reserves and further compromising its overall financial resilience but running a structural deficit of £4.3 million.”
Concerns aired
The ruling Alliance administration’s plans have proven controversial, with both the Isle of Wight Conservatives and Liberal Democrats airing concerns.
Island Tories accused the Alliance of ‘out of control’ spending whilst the Liberal Democrats, though condemning local government ‘underfunding’ by Whitehall, expressed disquiet over a proposed reduction in ‘affordable housing equity’ and potential cuts to the council’s work with the voluntary sector.
Full Council will meet at 5pm at County Hall. Residents can watch live by clicking on the relevant link in the online agenda.
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
