While many will be celebrating the removal of controversial parking charge proposals from the Isle of Wight Council’s budget, the mood at County Hall was gloomy earlier this week (Wednesday).
Every corner of the chamber agreed the local authority’s finances were in a dire position, with at least 1 representative warning a Section 114 notice – the closest a council can get to bankruptcy – was not far off.
Key elements of the passed 2026/27 budget include a 4.99% council tax increase, a statement reading ‘there will be no compulsory redundancies’ – despite an amended staff reduction programme amounting to £541,000, £14.8m more for adult social care and £3.9m extra on children’s services.
There will also be £13m in government Exceptional Financial Support (EFS) for 2026/27.
EFS is a key source of funding for financially distressed local authorities and gives councils central government permission to use capital budgets, borrowing or asset sales to fund day-to-day spending, according to the Institute for Government.
Leaders of the Alliance, Conservative and Liberal Democrat groups reached a deal where their respective amendment plans were incorporated into council officers’ original proposals.
Several notable changes were made on top of scrapping the parking charge policies such as ditching a new under 19s charge for the Floating Bridge, keeping Newport Roman Villa open to the public and continuing the Duke of Edinburgh Award support service for young people.
Added measures to raise money include reducing the council’s Transformation Reserve, erasing capital spending on parking machines and tariff boards and the chamber microphone system and new charges for the DIY rubble disposal scheme.
How councillors voted
- David Adams (Independent) – against
- Debbie Andre (Alliance) – for
- Jonathan Bacon (Alliance) – for
- Michael Beston (Conservative) – for
- Ed Blake (Conservative) – for
- Paul Brading (Conservative) – for
- Geoff Brodie (Very Broad Church)– against
- Rebecca Cameron (Empowering Islanders) – for
- Vanessa Churchman (Conservative) – for
- Claire Critchison (Alliance) – for
- Ian Dore (Independent) – for
- Warren Drew (Conservative) – for
- Paul Fuller (Alliance) – for
- Andrew Garratt (Liberal Democrat)– for
- Stephen Hendry (Conservative) – for
- Chris Jarman (Empowering Islanders) – for
- Mark Jefferies (Alliance)– for
- Julie Jones-Evans (Alliance) – for
- Phil Jordan (Alliance) – for
- Joe Lever (Alliance) – against
- Michael Lilley (Liberal Democrat) – for
- Karl Love (Independent) – against
- Karen Lucioni (Alliance) – for
- Clare Mosdell (Very Broad Church) – against
- John Nicholson (Conservative) – for
- Bill Nigh (Reform UK) – for
- Martin Oliver (Conservative) – against
- Lora Peacey-Wilcox (Alliance) – for
- Matthew Price (Conservative) – against
- Richard Quigley (Labour) – against
- Chris Quirk (Conservative) – for
- Ray Redrup (Conservative) – for
- Sarah Redrup (Liberal Democrat) – for
- Joe Robertson (Conservative) – for
- Peter Spink (Empowering Islanders) – for
- Ian Stephens (Alliance) – for
- Nick Stuart (Liberal Democrat) – for
- Ian Ward (Conservative) – for
- Caroline Gladwin – absent but gave apologies
- Cllr Clare Mosdell, of the Very Broad Church group, said:
“I’m not going to vote for it (budget) because I don’t agree that you’re not going to make people compulsorily redundant.
“It’s all very well putting sticking plasters on and borrowing stuff but I think you have to be honest with the public…this isn’t government coming to save you, this is government giving you a loan.
“None of you want to sign up for a 114 at the moment, but it’s going to happen and if it’s not happening now it will happen in a year’s time or two year’s time.”
Liberal Democrat group leader Andrew Garratt said:
“I endorse the words of the leader of the council (Phil Jordan) of where to place the blame for the situation we are in – at the government’s door.
“What I see we’re trying to do is at least steer the ship away from that black hole at least for a little bit longer. I’ve read up on experiences of councils that have seen the commissioners come in…I understand members did hear from a union representative who had experienced that…I think the word used there was it was brutal.
“So anything we can do to steer away for at least a little bit longer is the right thing we can do for residents.”
Government intervention usually comes very quickly after a section 114 notice is issued and all non-essential spending may stop, according to the Local Government Information Unit.
Ministers may appoint independent commissioners to take control of the council.
Cllr Karl Love, Independent representative for East Cowes, said:
“We have supported government from 2010…they’ve taken £100m a year from us as a council.
“We’ve supported them in their hour of need through their austerity created by the banks. They took our grants…we suffered and now it’s our point of need.
“It’s not unreasonable to expect government who would tell us austerity is over for them to return just 25 per cent of that £100m that they took.”
Cllr Julie Jones-Evans, Alliance member for Newport Central, said:
“We’ve never been in such a terrible situation.
“I don’t think we should be taxing our residents any more…we are a very highly taxed area,” the councillor said.
“I thought devolution was going to be coming this year and that would give us some kind of sense of getting out of this mess but because that’s been delayed by two years, it really has made me feel quite despondent.”
She added that she did not want to vote for the budget but it was the “responsible” thing to do.
Cllr Chris Jarman, Empowering Islanders group leader, said:
“What we’ve got before us is the result of government who have put us on austerity on steroids. We don’t have a lot of choice, and this isn’t a solution.
“All this does is to defer a situation for a fixed period of time. Indeed, the prognosis from the 151 (chief financial) officer for the next few years is pretty awful.
“Do we extend the runway one more time in the perhaps vague hope that government will do something to recognise our situation? My guess is they will not.”
Cllr Ed Blake, Conservative group leader, said:
“This a diabolical situation we’ve been put in. Back in August we were looking at potentially making £3m to £4m in savings across this council. That then was deemed an unpalatable set of circumstances.
“And then the government turned around at Christmas with another Christmas present similar to last year…a reduction in funding.
“I’d like to thank the leader of the Lib Dem group, Cllr Andrew Garratt, and Cllr Phil Jordan for remaining around that table – it got fractious in there – but remaining round that table for the better of the Island.”
Deal with it like we all have to can’t buy this can’t buy that lights off at night no heating on..
Double standards here then,but all of you hypocrites voted for an allowance rise,you seem to forget,you work for the electorate,you will be waiting for my not value for money council tax this year
Doesn’t matter how much we pay council tax etc
they will always be pleading poverty.
Poor management is the answer, they squander our
hard earned money.
Hate to say it, but you are absolutely right in this case EIE
People struggling to pay the ever more expensive council tax, for no return. Have felt austerity for years now.
Not sure why council employees are seemingly exempt from redundancy, unlike the private sector.
The reason the country is in a mess is because there are
too many public sector shirkers in the country,
many of them have been shirking from home since
the pandemic on full pay.
Could easily sack 50% of them. A.I could do their jobs
more efficiently.
stop spending money on freeloaders benefits that have moved to the island or been relocated to the island after turning up on a dinghy. Stop wasting money on SEN kids taxis -that is over a million a year – get the sponging parents to pay for their kids travel to school