The Isle of Wight Council has expressed its ‘profound disappointment’ at the local government settlement announced yesterday (Tuesday) by the Secretary of State for Levelling Up.
The council said the funding did not go far enough in addressing the significant underfunding of services over many years.
The authority had already prudently assumed a £1 million uplift in government funding for 2022/23, as the minimum that could be reasonably anticipated.
No further support
As a result the settlement offers no further national support for pressures felt locally, particularly within adult social care and children’s services, the council’s biggest areas of spend.
In announcing an extra £1 million for public services on the Island, the government said it had recognised “the unique circumstances facing the Isle of Wight Council and its physical separation from the mainland.”
However, the reality is that the authority’s finances remain under severe pressure with the need to find £3 million worth of savings in the coming year remaining unchanged.
Jarman: Extra cost of delivering services is £6.4m
Cllr Chris Jarman, Cabinet member for strategic finances, said,
“While any additional funding to support our vital services is welcome, we are deeply disappointed with the amount offered by government and the total lack, once again, of a proper ‘Island Deal’.
“It is now six years since government accepted a peer reviewed study from the University of Portsmouth which calculated the extra cost of providing local government services on the Isle of Wight — ‘the island factor’.
“In 2015 that extra cost was found to be at least £6.4 million. The figure is plainly greater now. In addition work recently completed with government using funds awarded in the last settlement confirmed estimates of the shortfall of between four per cent and 25 per cent of the council’s expenditure depending on the basis of the calculation.”
Jarman: We hope this is a first step on the path to securing additional funding
Cllr Jarman added,
“Ministers have regularly stated a commitment to address this through the Fair Funding Review of local government, however, that review has been repeatedly delayed by government. That now seems to be rescheduled again for the next financial year.
“As such, we hope this is a first step on the path to securing additional funding and the government properly engaging with the council about what it needs to finally agree that the Island is an island with costs that it would not have were it to be part of the mainland, and also that it should stop being the only UK island council not to receive a permanent funding uplift from government.
“Government will point to the increase in ‘Core Spending Power’ of 7.1 per cent, however this compares to a 7.4 per cent increase nationally and is to recompense councils for all funding pressures, including new burdens, the increase in National Insurance Contributions and the National Living Wage at 6.6 per cent to name a few.
“It must also be noted that all councils are receiving a similar uplift which further underlines the fact the money announced on Tuesday is unrelated to the additional and unique costs of providing services on the Island which has been a long standing inequality in funding.”
The council’s proposed 2022/23 budget will go before Cabinet tomorrow (Thursday) and Full Council on 23rd February.
News shared by Isle of Wight council press office, in their own words. Ed
Image: Policy Exchange under CC BY 2.0
