The Isle of Wight Council has unveiled a stark draft budget for 2026-27, warning of a £20million structural deficit and setting out proposals that include a 4.99% council tax rise, service reductions and a cross-council staffing cut programme.
The authority says it is facing unprecedented financial pressure driven by rising demand in adult and children’s social care, soaring contract costs – particularly for waste – and what it describes as a national funding settlement that leaves the Isle of Wight at a significant disadvantage compared with similar councils.
Council leaders say the Island’s geography creates unavoidable additional costs for transport, specialist placements, waste, contractor availability and the need to provide all statutory services locally – pressures that do not affect mainland councils in the same way.
Since 2010, the council says it has delivered around £100million in savings. A further £6.2million of savings has been identified within the latest budget proposals. However, with net funding forecast to remain flat in the coming years, the authority says the scale of the deficit cannot be resolved through local efficiencies alone.
To avoid issuing a Section 114 notice – effectively declaring it cannot balance its budget – the council has applied to the Government for Exceptional Financial Support. If approved, this would allow the authority to take out a loan to plug the remaining gap.
The council has acknowledged that such borrowing is not a long-term solution and would add further costs through loan repayments and interest. Approval would also require additional savings and the delivery of a transformation and improvement plan overseen by an independent board.
No final decisions have yet been taken. The proposals will go before the Policy, Finance and Resources Committee on 20th February and Full Council on 25th February.
Under the draft plans, the council is proposing:
- A 4.99% council tax increase, the maximum permitted without triggering a referendum and a requirement of the Exceptional Financial Support process
- Efficiencies and service changes in adult and children’s social care
- Increases to selected fees and charges, including parking and the floating bridge
- The introduction of new car parking charges in certain areas of the Isle of Wight
- Adjustments to elements of waste and public realm services
- Changes to some non-statutory services
- Closure of Newport Roman Villa to the public, while continuing to maintain the site
- A reduction and re-prioritisation of capital investment
- A council-wide staffing reduction programme, subject to formal management of change processes including redeployment and voluntary redundancy
Alongside the savings measures, the authority says it will continue to invest in core statutory services through its 2026-27 capital programme.
Planned investment includes improvements to Beaulieu House, a new emergency accommodation unit and capital projects supporting children with additional needs, as well as new coastal defences to protect key seafront areas.
Funding is also earmarked for playground renewals, public realm improvements, highways safety works, drainage schemes to reduce flooding, geotechnical works, equality-related road network improvements, crematorium upgrades, school maintenance and the continued expansion of Wightcare assisted technology to support vulnerable residents living independently.
The council has stressed that much of this capital investment is funded through ring-fenced grants or committed programmes and cannot be diverted to plug day-to-day revenue gaps.
You could start by not taking the pay rises you gave yourselves,it should have been put to public consultation,considering you work for the electorate,its the least you could have done,but no,stuff the electorate,lets just put everything else up,going to cost a lot to send out red letters for non payment of council tax as you will most definitely be waiting for mine!
Quick enough to award themselves a pay rise over the council tax rise again
Something doesn’t stack up here and literally stinks ! It was only a couple of months ago on the 18th December 2025 it was announced that Thalia was “walking away from it’s 25 year waste contract” and that the IW Council was urgently seeking a new waste supplier from the 1st April 2026 – and surprise, surprise Veolia suddenly appears on the scene. What happened to the IW Council invoking Consequential Damages on Thalia as nobody just walks away from a multimillion pound Contract without consequences. How tight was the Council contract with Thalia and why should the IW Council taxpayer now being asked to pay for twice as much for the new contract if the Council failed in it’s contract with Thalia ?
Reducing the workforce is the best option, it costs too much
employing unnesseccary staff
So all this and the councilors still voted to give themselves a pay rise
All non statutory services should be immediately cancelled until the deficit is reduced to zero, councillors should not have any increase in their generous allowances until they balance the books.
No wonder with the amount of wasted money.
All those Fleet cars are a waste of our money.
The floating bridge.
The consultants they all need to make decisions for them because they are incapable of taking responsibility.
Useless lot.