Phil Jordan, leader of Isle of Wight Council shares this latest news from the Alliance Group. Ed
Following recent press releases [not here at OnTheWight, Ed] to accompany the visit to the Isle of Wight of Reform UK leader, Nigel Farage, the Alliance group sets out some fact-checked information to correct claims being made to Island residents.
Recent commentary from Reform UK attempts to portray the Isle of Wight Council’s borrowing position negatively. However, the actual figures demonstrate a clear and sustained improvement in the council’s long-term financial position, alongside responsible short-term treasury management.
Long-Term borrowing has fallen significantly
The most important indicator of financial sustainability – long-term borrowing – has fallen again this year.
Long-term borrowing fell by £10.1m in the last financial year. Over the last five years it has fallen by £51.2m, from £197.7m in March 2021 to £146.4m in March 2025. This represents a 25.9% reduction in long-term debt.
This consistent reduction demonstrates a clear strategic approach to lowering structural debt, reducing interest costs and strengthening the council’s balance sheet.
Short-Term borrowing reflects flexible treasury management
The Reform UK press release focuses on the increase in short-term borrowing. However, short-term borrowing is a normal and flexible treasury management tool used by local authorities.
These loans are adjustable daily and are often used to manage cash flow efficiently or take advantage of better short-term interest rates. Over a longer timeframe, short-term borrowing has actually fallen by £9m (20%) since 2021.
In other words, any recent short-term increase reflects active financial management rather than structural debt growth.
Overall borrowing is down
When both long- and short-term borrowing are considered together, total borrowing has fallen by £60.3m (24.8%) since 2021.
Debt per resident remains well below the national average and borrowing per resident stands at £1,281.03. The England average local authority debt is £1,688 per head.
This means the council’s borrowing level is over £400 per resident lower than the national average, demonstrating a comparatively prudent approach to borrowing.
A Five-Year trend of strong debt reduction
Looking beyond a single year provides the clearest picture: Total borrowing has fallen from £242.7m in 2021 to £182.4m in 2025. This is a £60.3m reduction in overall borrowing.
The council has therefore reduced total debt by nearly a quarter in five years. Few authorities have achieved a reduction of this scale while continuing to deliver services and invest in local infrastructure.
The financial data shows a clear and responsible strategy: Long-term debt continues to fall, overall borrowing remains stable, debt per resident remains far below the national average, total borrowing has reduced by almost 25% in five years.
Short-term borrowing adjustments are simply part of normal treasury management, not an indication of worsening finances or maladministration.
Far from the negative picture painted by the Reform UK press releases, the figures demonstrate sustained progress in strengthening the council’s financial position while keeping borrowing well below national norms.
Council Tax claims
Counter balancing other Council Tax claims, Reform UK councils have enacted or proposed significant council tax hikes across England.
Most are proposing 4.99–5% and in one major case (Worcestershire) pushing for up to 10%. Only a few (three) are holding increases at 2–3%
Reform UK campaigned for election on lower‑tax promises, but once in power, Reform led councils have quickly introduced widespread tax hikes across Reform‑controlled authorities.
- Durham: Proposes up to the full 5% rise.
- Warwickshire: Proposed increase: 3.89%. (Council Officials warn anything under 5% is financially “risky.”)
- West Northamptonshire: Expected to reach 5%.
- Leicestershire: Proposed 3%. (Contradicts earlier pledge to “categorically” reduce council tax.)
- Worcestershire: Consulting on up to 10% — the most extreme Reform proposal.
- Kent: Preparing a 5% increase.
- Derbyshire, Staffordshire, Lancashire: All listed among Reform-run areas expected to adopt maximum rises (5%).
- Lincolnshire: Proposed rises between 2% and 3%.
- Doncaster & North Northamptonshire: Both opting for the full 4.99% increase permitted by law.
Island being used as “a test bed for national politics using false and distorted facts”
The Alliance commented,
“The financial predicament of the Isle of Wight Council is widely known and understood as a problem of Government funding, not local financial management.
“Residents need to have the facts before them, not distortions and clouding of the truth.
“It is a shame that our Island appears to have been selected as a test bed for national politics using false and distorted facts to entice voters to place national issues ahead of Island concerns”
