The Isle of Wight council leader has hit back at claims made by the Conservative group of councillors at County Hall that the Alliance administration had reduced reserves from £117m down to £8m since 2021.
Speaking today (Thursday), Councillor Phil Jordan was able to demonstrate that in fact, total reserves had increased from £117m in 2021 to £124m in 2024. A far cry from what the Conservative group had claimed.
Councillor Jordan told OnTheWight,
The quoted Reserves of £117m are sourced from published data (called the Revenue Outturn) and based on returns that Councils make to Government annually after they have closed their accounts at year end. The latest return that has been made to Government from the IWC is for the period ending March 2024. These are based on Audited Accounts.
“Public records show that at March 2021 the Council had Total Reserves amounting to £117m which included General Reserves of £13.6m.
“At March 2024 the Council had Total Reserves amounting to £124m which included General Reserves of £13.2m
“The Total Reserves sums quoted (of £117m at March 2021 and the directly comparable £124m at March 2024) include All Reserves both Earmarked Reserves for known future liabilities and risks and Unallocated Reserves (i.e. our General Reserves.). The same data that the conservative group have used for their comparison.”
The Earmarked Reserves
For further clarification, Earmarked Reserves include,
- Schools Reserves (from their delegated Budgets)
- Capital Reserves (Fully Committed to the Capital Programme where decisions have been taken to fund capital schemes)
- Insurance and Risk Reserves (to cover risks for which we are not insured or able to be insured)
- Contractual Reserves – such as for the PFI or other “sinking funds” which for asset repair and renewal
- Reserves for liabilities – such as Business Rate appeals, COVID etc.)
- Reserves for funds / grants received in advance of use – Government Grants, S.106 Funds etc.
Why the increase?
The reasons for the increase in Total Reserves of £7m over the period 2021 to 2024 are:
- Increase in Capital Reserves – to support the Capital Programme
- Increase in the PFI Reserves (as surplus funding received in the early years of the contract are held to provide for deficits in funding in the later years of the contract)
- Increase in Schools Reserves
Jordan: Political games are played out on our Island by the Conservatives
Councillor Jordan continued saying:
“I am concerned that some basic publicly available information is not fully understood by the Conservative group and their ‘spokesperson’. Instead, the political games are played out on our Island and cause concern and worry for our residents.
“Far from spending monies we don’t have, we have not increased lending, we have cleared a number of previous loan liabilities and therefore reduced our debts, we have acted in the best interest of this Island under the prevailing financial circumstances, been prudent with our finances, invested in our Island for those that are the most vulnerable, prevented increased charges on many services such as parking – no increase in charges again for the second year running – no increase in Floating Bridge charges, investing in coastal defences and infrastructure and much more.
“In addition to all of this prudent management of the council finances we have increased the reserves from those in 2021 of £117m to £124m today. An increase of £7m back into reserves as measures to make sure we have the contingencies for eventualities that may happen in the coming year.”
Jordan: Difficult circumstances caused by continuous cuts to funding from a Conservative Government since 2010
The council leader finished by saying,
“Far from reducing reserves in the outlandish manner reported by the Conservative group at County Hall, the residents of this Island will instead be keen to understand that reserves have actually gone up since 2021 by £7m and debts have been reduced over the same period.
“We have safeguarded jobs, invested in the Island, not increased charges where we could, and we continue to improve the outcomes for Island residents under very difficult circumstances.
“Ironically, the difficult circumstances that have been rained down on our Island by continuous cuts to our funding from a Conservative Government since 2010.”
