Islanders could soon hear the latest on the ‘perilous financial state’ of the Isle of Wight Council.
The policy, finance and resources (PFR) committee is due a verbal update on the local authority’s finances next week following fears earlier this year that a Section 114 notice – the closest a council can get to bankruptcy – is not far off.
Leader flags financial state as key concern
At the end of May, County Hall’s newly elected leader, Councillor Jonathan Bacon, said the two biggest issues on the horizon were devolution and the ‘perilous financial state we’re in’.
A report brought to full council in February said the 2026/27 budget, which ultimately included a 4.99 per cent council tax hike and a staff reduction programme totalling £541,000, will be the ‘most challenging ever considered’ for the past ten years.
Structural deficit could triple by 2029/30
It cited a structural deficit of almost £20 million which if ‘left unattended’ could rise to £65 million by 2029/30.
What’s driving the shortfall
Three key drivers of the deficit were mentioned: the ‘rapidly escalating’ costs of adult social care, the doubling in cost of the waste contract and a £3.1 million cut in government funding.
Exceptional Financial Support in question
In March, senior council officers told the PFR committee a key source of funding for financially distressed local authorities that was referred to in County Hall’s 2026/27 budget plans, Exceptional Financial Support (EFS), may not have to be used.
Budget breakdown
The passed 2026/27 budget included £12.9 million of EFS, additional spending in adult social care of £14.8 million and children’s services of £3.9 million as well as £6.5 million extra for waste services.
PFR committee councillors are due to meet at County Hall at 5pm next (Thursday, 9th July 2026).
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
