Extra money for Isle of Wight council possibly delayed as Government’s ‘Fairer Funding Review’ postponed

There’s an overspend of £700,000 and the Isle of Wight council were hoping to get £6.3m more from the Government. Read on for why that’s unlikely happen

budget on keyboard

The next year’s budget for the Isle of Wight Council is still not sorted with its deadline fast approaching — but council tax looks set to rise by four per cent.

The council’s 2020/2021 budget must be agreed in February at a meeting of Isle of Wight Council to leave enough time to implement the budget before the new financial year starts on 1st April.

Budget still not finalised
Cabinet member for finance and resources, Cllr Stuart Hutchinson said at a meeting of the corporate scrutiny committee on Tuesday, that, due to a delay in government proceedings, the budget has not been finalised yet.

Fair Funding Review postponed
Following the postponement of the implementation of changes from the Fair Funding Review — a look at how local government funding is allocated and distributed between authorities — and business rate retention, question marks remain over the council’s final budget.

The Isle of Wight council were hoping to gain an extra £6.4m in the Fair Funding Review, with Isle of Wight Conservative MP Bob Seely stating in September last year that it was on its way.

Overspend down to £700k
A projected overspend of the £150m 2019/2020 budget has also added problems to the funding arrangements — however the council have been able to reduce its overspend to £700,000 from £1 million.

Cllr Hutchinson said it has been most unusual to have an overspend and was hopeful it could be further reduced.

He said:

“In previous years we have aimed to come in slightly under budget but I am pleased to say that because we are rigorously controlling our overspend we have been able to pull it down.”

Overspend to come from reserves
Any overspend left at the end of the council’s year, on 31st March, will be taken from reserves the council hold, Cllr Hutchinson confirmed.

He said:

“I do not have to tell you that it gets more and more difficult each year.”

Cllr Hutchinson also said it is a ‘really serious concern’ for him of where the council are going to find the required £4.5 million of savings for next year.

Brodie: Getting worse with “this clown in Downing St”
Cllr Geoff Brodie, an independent Labour councillor for Newport East, said he felt sorry for anyone who put themselves through working out the budget.

He said:

“This will be the tenth appalling budget round I have sat through.

“We are getting to around about £90 million taken out of local government on the Isle of Wight in the past ten years and with this clown in Downing Street, it is getting worse and worse and worse.”

An expected four per cent rise in council tax was recommended to be put to the council in February — with two per cent solely going towards adult social care — following a 2.99 per cent rise last year.

Image: Got Credit under CC BY 2.0

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9 Comments on "Extra money for Isle of Wight council possibly delayed as Government’s ‘Fairer Funding Review’ postponed"

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kerry

How much public money from the IW Council Tax is wasted on that bottomless farce, the floating bridge?

alisonjane

I expect the rise in Council Tax is needed to continue paying the extortionate wages of
Jay Jayasundara!

Geoff Brodie
Not only will the Tories be increasing Council Tax from April by 4%, they will also be raiding Reserves to balance this year’s overspend (likely to be £500k) and by a further £2m to balance next year’s now £5m budget shortfall. The end of austerity and financial competence under the Tories ? Hardly. Just wait until Johnson and his mob get started at Westminster. At least the… Read more »
greenhey

If you have a look at the hedge funds/Russians who funded the recent Tory campaign, you can only expect they will do the same again.

wellsm

Cut the cloth according to available income or raise taxes. The latter route is not a vote winner, as we have just seen.

hialtitude

‘Between 2010 and 2020, councils will have lost almost 60p in every £1 of central government funding. This has created an unsustainable gap in council funding that is having a significant impact on the services which local authorities deliver in their communities.’

Source: Local Government Association

Not hard to see why local services and the Council budget are under such pressure.

Tim

An overwhelming majority of islanders voted Bob back in so the island is no longer a priority for public funds!

njb249
The vote at the GE was tactical by many people, I think the only reason Bob Seely was re-elected, was to get a majority government that would achieve Brexit.You may remember that the majority vote in the 2016 Referendum on the Island was to Leave the EU. The problem, we have as island residents is that Bob Seely appears not to be acting in our interest. Why… Read more »
Jenny Smart

We’ve just voted for 5 years more of being ignored and underfunded as an island. No Conservative government is going to invest in such a safe Tory constituency, and as for Bob Seely? well we’ve stupidly provided him with a further 5 years of junketing around the Globe,

So all you electoral idiots out there, stop whinging, suck it up, and enjoy.