UNISON, the public services trade union representing 1,000 staff at the Isle of Wight Council, is expressing major concern about the implications for services and jobs as a result of the current funding crisis facing the Local Authority.
As publicised in a number of recent media reports, it is increasingly clear that the Council is facing a massive budget shortfall as a result of Central Government’s new ” fair funding” formula.
Funding massively reduced
Despite the evident need for greater resources to meet the needs of Islanders, and the ongoing efforts of the Council and MPs to highlight the need for an Island Deal (which takes account of the inevitable additional costs resulting from being separated from the Mainland by sea), the proposed financial settlement will actually massively reduce the money available over the years ahead.
The exact implications for jobs and services will become clearer following the meeting of the Council’s Policy, Finance and Resources Committee to be held on Friday (20th February) with the final budget being agreed next week by the Full Council.
Serious implications for staff
However, it is clear that there are serious implications with the projected structural deficit for the year ahead being in excess of £20million. This situation is pointing to the need for at least £1.25m in staffing reductions over a full year going forwarding – equating to a loss of at least 30 full time equivalent posts across the Council.
There is inevitably massive unease and uncertainty amongst the whole workforce as a result.
Rising deficit
Current projections indicate that this deficit is likely to rise to £39m in 2027/28; £55m in 28/29 and a massive £64m in 29/30. In these circumstances, the Council is being driven into a situation where it needs to apply for exceptional financial support ( EFS) from central government in order to preserve essential services and secure local authority jobs.
The EFS would essentially be a loan of around £13m to be repaid over 20 years. An approach along these lines is likely to be crucial to avoid a scenario in which the Council would essentially be bankrupt with the need to apply for a Section 114 notice.
Chiverton: The threat of dozens more redundancies is very frightening
Mark Chiverton, Secretary for the IW Local Government Branch, said,
“UNISON fully supports the ongoing efforts of the Council leadership and local MPs to highlight the need for an adequate financial settlement from Central Government which takes account of the Island’s exceptional circumstances.
“There has been a consistent failure to recognise the unique challenges resulting from the Island’s particular demographic and the obvious additional costs resulting from our being an Island. Well over £100 million in real terms has been cut from IWC expenditure since 2010 and the latest financial settlement is another hammer blow.
“Services for Islanders have already been decimated and are operating on a shoestring. Staff are badly over-stretched with a vacancy freeze in place. The threat of dozens more redundancies is very frightening with potentially disastrous implications.”
Young: Everything possible must be done to avoid the need for a Section 114 notice
Patrick Young, UNISON South East Regional Organiser, said,
“It’s essential that the Council continues to engage in the fullest possible consultation with recognised trade unions.
“Everything possible must be done to avoid the need for a Section 114 notice in which yet more draconian cuts would be enforced by Commissioners appointed by Central Government rather than decisions being made by democratically elected local representatives.
“In these circumstances we support the proposal of an application for Exceptional Financial Support and look forward to further urgent discussions designed to minimise service cuts and job losses.”
Joint meetings have already taken place between management and UNISON to consider measures designed to minimise the need for compulsory redundancies and these will continue over the weeks ahead.
