The Isle of Wight council (IWC) is calling for residents to share their opinions and suggestions regarding the upcoming budget. IWC, like many others, is currently grappling with significant financial pressures.
These pressures stem from various sources, including the rising costs of social care for adults and children, homelessness, and general inflationary pressures. The council is also facing increased demands for services due to the cost-of-living difficulties being experienced by residents.
Funding and fiscal challenges
Efforts to secure additional funding are ongoing, with the council advocating for an Island Deal with the Government. This deal aims to address the unique costs of providing services on the Island.
However, even with potential additional funding, the council anticipates the need for cuts due to the scale of financial pressures.
Capital investments in schools, roads, housing, and coastal protection heavily rely on government grants. While borrowing is an option for ‘invest to save’ schemes, their financial viability is challenging, particularly with high-interest rates affecting borrowing costs.
Council tax and social care funding
The Government has announced additional funding for Social Care. It expects some of this funding to come from an increase in council tax. For the fiscal year 2024/25, the maximum allowed increase is 5%, divided into 3% for general services and 2% for adult social care.
Despite the anticipated increase in funding for Social Care, the council still faces a significant budget gap. The estimated shortfall is around £12 million. The exact settlement from the Government will be known later in December.
Engagement and consultation
The council is actively encouraging residents to participate in the budget consultation process. This engagement is crucial for shaping the future of council services and addressing the financial challenges ahead.
Residents’ views and suggestions will play a key role in how the council navigates these fiscal pressures. The participation of the community is vital in ensuring that the council’s decisions reflect the needs and priorities of Isle of Wight’s residents.
