Another Isle of Wight Council tax rise of five per cent is on the cards – and the council leader has said it is “absolutely not fair” for residents.
The council has lodged a bid for Exceptional Financial Support (EFS) with government to try to alleviate financial pressures it is facing.
“Severe predicament”
In an interview with the Local Democracy Reporting Service (LDRS) this week, County Hall leader Phil Jordan said the authority was obliged to set the increase as part of its EFS bid amid a “severe predicament” in budget setting.
He acknowledged however that year on year hikes were “absolutely not fair” on Islanders.
£44 million budget gap by 2028/29
The Alliance group leader last month cited an internal council assessment showing a projected budget gap of £22.7 million in 2026/27, increasing to £44 million by 2028/29.
He previously said in a letter to government that the outcome of Whitehall’s Fair Funding Review places the authority in a “materially worse financial position, reducing overall funding by £13.4 million over the next three years”.
A key source of funding
EFS is a key source of funding for financially distressed local authorities and gives councils central government permission to use capital budgets, borrowing or asset sales to fund day-to-day spending, according to the Institute for Government.
Councillor Jordan said part of the process for applying includes showing to Whitehall that you have done “everything you can” as an authority to set the budget – actions such as asset sales, using up reserves and raising council tax to the maximum level.
He therefore said County Hall was obliged to apply a 4.99 per cent council tax increase.
The Ryde North West councillor also referred to financial constraints arising from delivering statutory services, saying there was “just nowhere to go”.
Jordan: Costs and outgoing are increasing while income is decreasing
He told the LDRS,
“You have to spend on social care, it’s two thirds of our entire budget. Social care overspend is seven to eight million this year, and growing.
“Children’s social care is two million and growing, because of special educational needs and disabilities (SEND) – and you can’t cut them so you have to keep paying for them.
“So, your costs and outgoing are increasing while your income is decreasing.”
Not fair to keep increaing council tax
Speaking again on the Fair Funding Review, Councillor Jordan said it had over three years placed the council in a “predicament that it cannot solve itself”.
Asked whether it was fair for council tax, to go up year on year, he said it was “absolutely not”.
“We’re already above the median council tax level across the country and it is not fair that we should have to continually increase council tax for our residents.”
Spelling out the way forward for addressing the council’s financial difficulties, he firstly mentioned “doing what we have to with EFS”.
Councillor Jordan continued,
“The answer is…the thing I’ve been working on and beating my head against the wall as have others, our MPs and senior executive team, is for government to recognise the Island is an island with increased provision costs and we’ve evidenced that.
“They’ve accepted it – that the cost of delivering on this Island are £24 million a year more than in an equivalent mainland authority – what we need them to do is pay us for that.”
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
