Councillor Phil Jordan, Leader of Isle of Wight Council, shares this latest news, in his own words. Ed
The Leader of the Isle of Wight Council has written directly to Government ministers to warn that the Island faces a serious and immediate financial challenge following the outcome of the Fair Funding Review and the provisional local government finance settlement.
The settlement would reduce government funding to the Isle of Wight Council by £13.4 million over the next three years, placing the authority in a materially worse position than comparable councils and creating what the Leader describes as “a real and imminent risk of being unable to set a balanced and lawful budget”.
Jordan: Situation has not been caused by poor management or lack of grip.
Councillor Phil Jordan said,
“I want Island residents to understand that this situation has not been caused by poor management or lack of grip.
“The Isle of Wight Council is actually fiscally well run, operates with low debt, and has already cut further and deeper than many other authorities. This is about a funding system that does not work for an Island.”
£22.7 million budget deficit in 2026/27
The Council’s internal assessment shows a projected budget gap of £22.7 million in 2026/27, rising to £44 million by 2028/29. Social care alone accounts for around 60 per cent of net expenditure, leaving very little room to absorb further cuts without affecting frontline statutory services.
The Leader said the Fair Funding Review fails to properly recognise the unavoidable costs of running services on a small island, including higher transport costs, limited economies of scale, workforce pressures and the additional demand created by serving millions of visitors each year.
Jordan: The Island isn’t remote. It’s unique!
Councillor Jordan said,
“Being physically separated from the mainland is not a lifestyle choice for a council — it is a permanent reality.
“While ‘remoteness’ has been partially recognised in one area of the funding formula, it does not come close to reflecting the real costs of delivering services on the Isle of Wight. The Island isn’t remote at all. It’s unique!”
Council services cost £27m more
Previous work with Government departments has shown it costs at least £23.7 million more each year to deliver like-for-like council services on the Island. That figure has now risen to around £27 million at current prices.
The Council is already preparing for the possibility that the settlement does not change, including identifying every achievable saving, reducing the capital programme to support day-to-day services, and preparing an application for Exceptional Financial Support. However, this support only provides loans, not additional funding.
The Leader said,
“I have to be honest with our Island residents.
“Loans alone will not fix a structural funding problem. Without change, we risk being forced to cut essential services, including preventative work in children’s and adult social care, increase our charges significantly, consider cutting statutory service scope and withdrawing match funding and Capital from vital coastal protection schemes.”
Jordan: I will continue to fight for a fair funding deal for this Island
Councillor Jordan confirmed he is now using every available political channel, alongside the Island’s MPs, to secure urgent ministerial engagement. He said,
“I will continue to fight for a fair funding deal for this Island.
“Island residents deserve funding that reflects the reality of Island life, not a formula that overlooks it.”
