Island residents are being invited to give their views on how the Isle of Wight Council should spend its money next year.
The annual budget consultation is now underway — seeking feedback from all residents about the priorities they want to see in the coming year (2023/24).
A short and focused survey seeks to understand how Islanders would prioritise spending for the next financial year.
The council is currently facing financial pressures from various sources, including the costs of energy and other inflationary pressures as well as continuing to deal with demand pressures, particularly in adult social care and children’s services.
Jarman: Government funding will not fully recognise inflation
Cllr Chris Jarman, Cabinet member for strategic finance, transformational change and corporate resources, explained,
“When we considered our available funding in April 2022, we were looking forward to a fair funding review by government and the potential for an ‘Island deal’ which we hoped would support the additional costs that we face on the Island.
“At the time we believed this would mean finding savings of around £6 million over three years, with £2m in 2023/24.
“However, since then, the financial position for all local authorities has worsened when we account for the rising inflation and energy costs, the long-term impact of COVID for which many of our services are still providing additional support, increasing demand pressures as a result of residents costs of living difficulties, and increasing interest rates making borrowing for ‘invest to save’ schemes financially unviable.
“Unfortunately, we also know that our general funding from government will not fully recognise inflation, resulting in a further pressure.
“At this early stage in the budget process, we estimate that we are facing around £22m of unanticipated budget pressures as a result of the issues outlined above.
“The government’s Autumn Statement announced additional social care funding, but includes the expectation that some of that additional funding will come from an increase in council tax to its maximum permitted level, which for 2023/24 is five per cent — made up of three per cent for general services and two per cent for adult social care.
“We won’t know exactly what our settlement from the government is until later in December or early January, but a very early estimate suggests we will receive an additional £6m for adult social care from government, with an expectation that a further £1.8m is raised by increasing council tax.
“Other funding from business rates and government grants is expected to generate a further £3.8m. If these early estimates are correct, this will leave us with a gap of about £10.4m.
“Some of this remaining gap relates to the slow recovery from COVID and we have a COVID reserve which can be used to offset a further £1.4m of the gap leaving £9m.
“While we are waiting for our final settlement figures from the government, we are looking at everything we can do to manage this gap.
“That means looking at further savings, continuing to press for an ‘Island deal’, and avoiding any decisions which might worsen the position at this point. We would also like to hear your views on the choices we have to make.”
Don’t miss the deadline
The survey will close on Monday 30 January 2023 and the budget options will be published in February.
Feedback can be sent via the Website.
News shared by Isle of Wight council press office, in their own words. Ed
Image: towfiqu barbhuiya under CC BY 2.0
