Man showing his empty pockets
Image: danmoyle under CC BY 2.0

Council leader highlights Isle of Wight council’s £23.7 million funding shortfall

Councillor Phil Jordan, Leader of the Isle of Wight council, has penned a letter to the Ministry of Housing, Communities, and Local Government (MHCLG), urging immediate intervention to address the unique funding challenges facing the Island.

He emphasised the significant financial strain caused by the Island’s geographical separation from the Mainland, which he says has been consistently underfunded by the government.

Financial disparity in service provision
Councillor Jordan praised the recent comments from Jim McMahon MP, which acknowledged the immense pressures faced by local authorities. However, he was quick to highlight that the Isle of Wight requires more than just words.

He pointed out that the cost of delivering essential services, such as adult social care, children’s services, and highways maintenance, is far higher on the Island than on the Mainland.

£23.7 million shortfall
According to the letter (see below), the Isle of Wight council faces additional annual costs of £23.7 million compared to its statistical neighbours.

Despite this, government funding currently falls short by £19.7 million, with only £4 million provided, and no guarantee that even this will continue.

Specific cost increases
The letter details the specific areas where the council incurs higher costs.

For instance, adult social care costs are 13% higher, equating to an additional £12.2 million per year. Children’s services face a 29% increase in costs, amounting to £7.3 million, while highways maintenance costs are 70% higher, adding £4.2 million to the council’s expenses.

Councillor Jordan expressed deep concern over the council’s ability to provide adequate services under the current funding model.

Call for emergency response
In his closing remarks, Councillor Jordan called for the government to increase the current funding allocation from £4 million to £10 million in this year’s settlement.

He reiterated the council’s willingness to work with the government to ensure a fairer funding model, one that acknowledges the additional costs borne by the Isle of Wight.