As we are approaching half-way through the term of the Alliance Group’s time in office at County Hall, News OnTheWight approached each of the Cabinet members offering an opportunity to highlight the work of their portfolio and their hopes for the coming year.
We began with Isle of Wight council leader, Lora Peacey-Wilcox, followed by Cllr Jonathan Bacon, Cllr Julie Jones-Evans, Cllr Debbie Andre, Cllr Karen Lucioni and Cllr Karl Love.
Up next is Cllr Chris Jarman, whose portfolio covers Strategic Finance, Transformational Change and Corporate Resources. In his own words. Ed
I agreed to join the Alliance Group after the May 2021 elections with enthusiasm, optimism and determination. I knew from my early days in the civil service the way that elected members are perceived and ‘guided’ by permanent staff. I brought first-hand experience from my business life of the difficulties of working with a coalition of independently minded people, each with their own personal ambitions. I was able to call on my lifetime of management in a commercial environment and the benefit of being unhindered by any political affiliation. My core guide was the premise upon which I was elected and the needs of those I represent.
I was invited and accepted the role of Strategic Finance, Transformational Change and Resources. Quite a title but effectively dealing with money and assets – often described as a local government equivalent of Chancellor of the Exchequer – but in reality not so grand and without any of the real powers that the national post comes with.
It did not take long to establish the significant debt held by the Isle of Wight council with a funding requirement of over £400m (there are various ways ‘debt’ is measured), a then current pension fund that was underfunded and a risk averse culture that only served to frustrate the change that was desperately needed.
I was, however, determined not to forget that premise of my election and the significant concerns of my electorate regarding over-development, lack of infrastructure maintenance including sewage, and the need for housing that Islanders could afford.
So how, dedicating 50+ hours a week to the cause and an A for effort, would I rate my achievements to date?
Strategic Finance – Achievement Grade B+
Working as a team, we were able to set our first balanced budget at the start of 2021 without any structural deficit and hence began the process of bringing down all of the debt indicators to more manageable levels.
Slowly, the IWC has greater regard to treating departments as business units with a more commercial approach to finances including the allocation of corporate overheads and cost of borrowing in funding initiatives.
We remain bound by a chronic fiscal legacy we inherited regarding the PFI contract on highways, floating bridge, numerous leasing arrangements, joint contracts with predominantly off-Island authorities and suppliers, an effectively dormant housing company and plethora of similar complexities that will continue throughout this electoral term and that with the focus of colleagues, are only now starting to be brought in line. Much work remains to be done in order to bring the IWC under what I would regard as a satisfactory financial basis.
The pension fund, thanks to a small dedicated and highly experienced team, came back into positive funding, much to the relief of those receiving their pensions and those yet to do so. A pension fund board has been reconstituted with formal training and sufficient rigorous procedures in place to guide it.
None of our work could have foreseen the launch of an illegal invasion of Ukraine by Russia. Whilst we benefit from some of the measures already in place regarding debt and borrowing, we had to react to the utility cost rises with new more expensive contracts and are now attempting to deal with the inflationary pressures that are mounting, as a result of the war, on every element of our cost base. The war has also exacerbated downward movements on market investments, reversing some of the gains made on our pension fund but still retaining it in positive territory.
Our persistent and yet unresolved financial challenge arises from the allocation we receive back from central government. It will be clear to every Islander that we have an economy that includes differential costs than the mainland. Shipping goods and produce to and from the Island, our unique aged demographics, reduced employment opportunities and lower average salary figures and a host of other differentiating realities of our day to day life all incur substantial disparages when compared to mainland based enterprises.
This differential has been argued at various times as between £10 and as much as £50 million per year. For over a decade we have sought to have this differential accounted for in our allocation and last year, for the first time, we managed to receive £1 million.
It is clear that we must provide a greater role in supporting ourselves and the route to this relies on finding substantial annual revenue generating initiatives. Westminster simply has not been and cannot be expected to assist in any meaningful way. We must innovate with courage, be bold and accept a higher risk profile to achieve such incremental annual revenue (reminder to self – must do better).
Transformational Change – Achievement Grade B-
Recognising the strengths and understanding our challenges as a small Island Local Authority demands flexibility and innovation if we are to provide the fiscal means to develop opportunities and to achieve results in shorter order. Understanding how the present hierarchical, political and risk averse structure of the council frustrates those characteristics has been a steep learning curve, but results are starting to come.
One of my main electoral goals was to address the long widely held frustrations regarding planning, particularly as it related to over development and lack of coherent infrastructure to support it. The internal and regulatory processes could not be addressed by any one councillor and it was clear that each step would require support of the majority of the 39 elected members.
Efforts paid off with the broad recognition of the difficulties faced within planning and resulted in the creation of a cross-political party working to revise procedures and protocols – roots and branch. The issues were further brought to light by a peer-review by external planning experts and through ombudsman findings. Although slow, progress is being made on this and positive change will result.
A second cross-party working group has been established to review the opportunity for structural changes in the organisational model, procedures and practices of the whole of the council – meaningful Transformational Change that can improve the operational mechanisms, management and decision making processes of the council and with a greater commercial rigour and efficiency. The internal goal should be to ensure we use the best of experience and talents of the elected members coupled with empowered staff with defined policies and objectives – a ‘get it done’ approach that encourages and rewards delivery rather than processes alone. The external goal is to provide the highest value service we can to Islanders as efficiently as possible.
Allied with the review of planning has been recognising the need for and delivery of an Island Planning Strategy that delivers what our Island needs whilst protecting our great environmental, cultural and historical assets. Here again cross-party working has delivered a route forward that recognises actual rather than speculative demographics and focuses on providing high quality homes that Islanders need and can afford.
A solid result so far, but these are just the first steps along a long road of changes.
Resources – Achievement Grade C
Our council possesses considerable capital including staff, expertise and property. It is also endowed with opportunities for borrowing and investing. We serve not only the 140,000 residents of our Island, but also the many commercial businesses and visitors. It also operates a guaranteed monopoly enjoying a status defined and protected by statute. To most commercial enterprises this would seem enviable were it not also for the statutory responsibilities that we must satisfy – and they are many.
Using our assets to meet the needs of Islanders and to deliver on our policies is not a trivial exercise. If we are to secure housing for Islanders, to provide recurring revenues that we can use to manage our economy, and to meet the substantial and growing needs of an increasingly aged population then we must formulate clear strategies and plans, for none of these can be achieved with a short term or even tactical approach. We must also be prudent and avoid taking on discretionary services unless there is a proven need to support a statutory obligation coupled with a clear market failure to deliver the same. Put simply, the council should not duplicate or compete with sectors that can be met by existing commercial businesses, but should focus on those statutory functions not otherwise resolved – housing and the environment being prime examples.
We have started to review many of the leasing arrangements of council assets and to give focus to disposal of the same. There remains considerable work to be done here and partnerships with Town/Parish/Community Councils and the strong Island voluntary sector will continue to prove invaluable.
2023 – Goals
Reaching a balanced budget that closes on our declared £22 million gap is critical. We must be mindful of the needs of those whose ability to sustain themselves and their families in this growing economic crisis is compromised.
Many positive initiatives have been started and we must have the determination and resolve to see them through using the assets and opportunities available to us.
It will not serve us, or indeed the people we serve, to hide the reality of our fiscal situation or the challenges we face. Openness regarding information, process and decision making is key to building and maintaining the trust of Islanders and of our Commercial Sector.
I remain as determined and committed to these goals as the day I was elected and will continue to use every means available to me to achieve them with the support of elected members, colleagues and staff alike.
Article edit
7.48am 5th Jan 2023 – Correct portfolio added at top of article
