The Isle of Wight council has announced its draft budget for 2025/26, prioritising community protection and essential infrastructure improvements.
The budget aims to address financial challenges while maintaining vital frontline services and supporting residents who depend on them.
Rising costs and increased demand
Local government finances remain under pressure, with costs increasing faster than income and funding.
The council faces an additional £15.8 million in spending for children’s services and adult social care next year to maintain current service levels.
This rise is driven by growing demand and the need to provide adequate care and support for vulnerable residents.
Proposed 5% council tax increase
To help meet these costs, the council proposes a five per cent council tax increase, including two per cent dedicated to adult social care.
This approach aligns with most councils nationwide, some of which are considering much higher increases of up to 25 per cent.
The Isle of Wight council aims to keep the rise as minimal as possible, while ensuring essential services remain funded.
Responsible budget management
The council plans to manage its underlying deficit through careful use of reserves, while maintaining them at sustainable levels.
Of the £1.5 million in required savings, efficiencies and income generation will be used to avoid service cuts.
Supporting residents and businesses
The council intends to freeze parking charges for a second consecutive year to ease financial pressure on residents and support local businesses.
Similarly, crossing charges on the floating bridge will remain unchanged.
Investment in infrastructure and coastal protection
Funding will continue for highway drainage improvements to reduce flooding, as well as repairs to footpaths and bridleways damaged by winter storms.
A major focus is on coastal protection, with investment in promenade repairs, seawalls, railings and groyne refurbishment to safeguard vulnerable coastal areas.
Enhancing local services
Beaulieu House, a children’s disability residential and respite home in Newport, will receive upgrades to ensure it continues to provide high-quality care.
Additionally, new schemes will support young people leaving care by helping them secure stable and long-term housing.
Maintaining public spaces
The budget includes funding for repairs and renewals in public areas, ensuring play equipment, litter bins and benches are maintained or replaced where necessary.
Capital investments
A £13 million capital programme will cover school maintenance projects and home adaptations for disabled residents, enabling them to live independently.
Further investment is planned for the Gouldings care home in Freshwater and the Parklands Dementia Hub in Cowes, building on previous improvements.
Jordan: Dedicated to ensuring our community continues to thrive
Council leader, Councillor Phil Jordan, said,
“Despite the challenging financial climate, our commitment to protecting and improving our community remains steadfast.
“We are dedicated to ensuring our community continues to thrive, even in the face of economic pressures.”
He highlighted the importance of coastal protection, stating,
“By investing in coastal infrastructure, we are taking proactive steps to safeguard our coastal regions from erosion and flooding.
“This investment goes beyond infrastructure; it’s about securing the homes and livelihoods of our residents.”
Councillor Jordan also reaffirmed the council’s commitment to advocating for fair funding from the government, maximising spending efficiency and balancing the budget responsibly.
Future financial planning
The council anticipates the need for ongoing savings, forecasting a requirement of £2.5 million in 2026/27 and £2 million annually in subsequent years to maintain long-term financial sustainability.
The budget will be reviewed by the Cabinet on Thursday, 13th February, before being considered by Full Council on Wednesday, 26th February.
Residents can access the full draft proposals on the council’s website – or embedded below.
