5% COUNCIL TAX HIKE LOOKS LIKELY TO HIT ISLAND HOUSEHOLDS FROM APRIL

A 5% council tax increase could be on the cards for Island residents as the Isle of Wight Council looks at a £12million gap in its finances, with indications that leisure centres and home-to-school transport could face cuts come April. It comes as County Hall waits with bated breath to hear how much it will get from the central Government in the year ahead, after missing out last month. Chris Ward, the council’s finance director, had hoped the Government’s autumn statement, released in November, would provide some financial hope for the authority. The statement saw the Chancellor of the Exchequer, Jeremy Hunt, announce an increase to the national living wage and cutting the rates of National insurance. However, an Isle of Wight Council spokesperson said there was nothing in the statement that would provide further relief from the financial pressures the council faces moving into 2024/25. The council’s greatest financial pressures are in adults’ and children’s social care — where it is currently looking at an £8.3million overspend. Additional funding has been announced for social care but with the expectation some of it comes from an increase in council tax to its topmost limit — of 5%, with 2% going towards adult social care. The Isle of Wight Council, along with other local authorities across the country, is now waiting for the outcome of the Local Government Finance Settlement later this month to understand exactly what it will get from the Government in the year ahead. Mr Ward said they won’t know how much that will be but do know, even after the increased funding for social care, it will leave a “significant budget gap of around £12 million”. The council’s spokesperson said it will now also face added pressure due to the 9.8% increase in national living wage. Other areas causing issues with the council’s finances include home-to-school transport and the council’s leisure centres. The authority has also launched its annual budget consultation, where it asks Islanders how they think the council should be spending its money. The survey asks residents how much they think council tax should be raised, whether they would support an increase in the amount taken for adult social and which services they think are the most important. The survey can be found at https://www.iow.gov.uk/council-and-councillors/transparency-our-data/our-finances/2024-2025-budget-consultation/. It will close on Friday 26th January ahead of the Isle of Wight Council approving its budget for the year ahead in February.