The Leader of the Isle of Wight Council has written directly to Government ministers to warn that the Island faces a ‘serious and immediate financial challenge’ following the outcome of the Fair Funding Review and the provisional local government finance settlement.
The settlement would reduce Government funding to the Isle of Wight Council by £13.4million over the next 3 years, placing the authority in a materially worse position than comparable councils and creating what the Leader describes as “a real and imminent risk of being unable to set a balanced and lawful budget”.
Councillor Phil Jordan has today (Wednesday) said:
“I want Island residents to understand that this situation has not been caused by poor management or lack of grip. The Isle of Wight Council is actually fiscally well run, operates with low debt, and has already cut further and deeper than many other authorities. This is about a funding system that does not work for an island.”
The Council’s internal assessment shows a projected budget gap of £22.7million in 2026/27, rising to £44million by 2028/29. Social care alone accounts for around 60% of net expenditure, leaving very little room to absorb further cuts without affecting frontline statutory services.
The Leader said the Fair Funding Review fails to properly recognise the unavoidable costs of running services on a small island, including higher transport costs, limited economies of scale, workforce pressures and the additional demand created by serving millions of visitors each year.
Cllr Jordan adds:
“Being physically separated from the mainland is not a lifestyle choice for a council — it is a permanent reality. While ‘remoteness’ has been partially recognised in one area of the funding formula, it does not come close to reflecting the real costs of delivering services on the Isle of Wight. The Island isn’t remote at all. It’s unique!”
Article continues below this advertisement
Previous work with Government departments has shown it costs at least £23.7million more each year to deliver like-for-like council services on the Island. That figure has now risen to around £27million at current prices.
The Council is already preparing for the possibility that the settlement does not change, including identifying every achievable saving, reducing the capital programme to support day-to-day services, and preparing an application for Exceptional Financial Support. However, this support only provides loans, not additional funding.
Cllr Jordan adds:
“I have to be honest with our Island residents. Loans alone will not fix a structural funding problem. Without change, we risk being forced to cut essential services, including preventative work in children’s and adult social care, increase our charges significantly, consider cutting statutory service scope and withdrawing match funding and Capital from vital coastal protection schemes.”
Councillor Jordan confirmed he is now using every available political channel, alongside the Island’s MPs, to secure urgent ministerial engagement.
He concludes:
“I will continue to fight for a fair funding deal for this Island,” he said. “Island residents deserve funding that reflects the reality of island life, not a formula that overlooks it.”
What about all the revenue from extortionate parking fees? Second home owners paying double council tax, plus our council tax is more expensive than mainland.
maybe cut a few jobs? Here we go our council tax is going to go up yet again in April??
The budget GAP will be £44milion. How much did you really think a few wage packets, parking meters and an additional 4% on the CT bills is going to achieve, when 60% of our INCOME goes on social care, eg, elderly care. Taken at basic level that means that without additional central funding 40% of taxed earners carry the 60%, and every year more people time out of contributing while we all have a duty of care to support them.
Well said, they need the extra money to fund their
golden pension pots.
Time to reduce their workforce, I wonder how many of
them are shirking from home.
Get ready for ridiculous Council tax increases.
Enough is Enough
The council do this every year
Start a few months before with we are skint then slap the tax up
They should start by thinning out with their employees that we pay for
Or at least get them to do the jobs they are paid for, like road seeping, drain and gully emptying.
They need to look at the lake that forms over the top of the drain at Ashey Rd/Upton Rd/Swanmore D junction.
I would report it but as it took over 10 weeks and several emails to sort out a constantly lit streetlight it’s not worth the bother.
don’t give themselves a budget busting rise in allowances, turn the heating, lights and computers off when they finish for the day at county hall, all adds up.
Always has every year…
If i dont get my democratic vote in may,they can stick there not value for money council tax up their bumholy!
All talk, people will still pay, they don’t have a choice.
That’s democracy for you NOT!
How about stop wasting money by resurfacing footpaths rather than roads.
Like recently resurfacing a perfectly good foot path along Marlborough Road in Ryde and York Avenue in East Cowes, total was of money.
Maybe reduce the salaries of some of the councillors.
Sack half the Council workforce, many of them are not needed.
Cut the freeloaders welfare charter then and return money to taxpayers. Stop laying the ground work by getting your poverty stricken narrative and begging bowl out, which is the first step in attempting to steal more money from workers
What about getting rid of some of these useless councillors like him for example and their extortionate wages, great saving in itself
Trust me, if the local elections in May are cancelled the council will be receiving a whole lot less council tax from cheated residents..
All talk, people will still pay, they don’t have a choice.
That’s democracy for you NOT!.
I can assure you in my case, it isn’t just talk. I will cancel my direct debit payments and they can then waste money they don’t have chasing me through the courts.
Good luck with that.
Too many people on the council gravy train. Importing ‘special needs’ people from the mainland. Corruption. Fat cats. Ridiculous ‘Sen’ expenses.
Council tax is my most expensive monthly outgoing. It’s disgusting.
If CT is your most expensive you must be doing very nicely. No rent or mortgage, and much cheaper energy costs compared to some. And still you whine about paying your contribution to less well off others’ needs? That makes me sick.
Council tax will soon be £500 a month.
You live in a mansion, do you? Or is that for your second home?
Just a modest Bungalow, but that’s nearly £300
a month.
Keep whacking on 5%+ only a matter of time before it’s
£500
The island needs more diversity, bring families
to the island, adds to the culture.
NO!
the island DOES NOT need diversity!
it does not add to OUR culture because diversity,it wants to destroy it,you utter idiot
You sound like a typical Reformer
Bless.
Hardly,but with all the crap you come out with,you gotta be labour,stick to whinging about speed cameras,or,if you dont have anything constructive to say,wind your neck in,youd soon complain if some illegals moved in next to you,you are just sad and stuck up.
Jordan, convicted drunk driver, liar and hypocrite. Get rid of him and his cronies. Couldn’t organise a tea party let alone run a council, shambolic, and getting worse.
Sadly defence is raising its ugly head and needs extra funding.
”If” we lived in a peaceful world !
Don’t panic everyone about bill rises. Our prime minister said not a penny more on your council tax bills if Liebor get in so you only pay the same as last year. Oh wait a minute they have u turned on that as well.
They have done more U turns than a driving instructor
Funny we don’t pay enough?????????
The Island is being supported by the tax payer by £7300 per person. Multiply that by 140,000 islanders – if that gross figure was reduced it would pay for a fixed link.
Across the Solent in Hampshire outside of inner city they are only supported by approximately £1500 per person with tax payers money. That is not money handed to every person but given to run all the services; our council being one of them, among various other forms of support from health, schools, social services, pensions income support etc.
if our GDP grows that figure then reduces,
if there were more islanders earning more, perhaps then the Government would be more sympathetic but Islanders don’t stand a chance going for jobs with larger salaries on the mainland because of the failure of the ferries. The Ferry Companies rule the Island, they say when you can sail, how much they charge you and stop our children from aspiring to other things on the mainland We need competition of mode acrossing the Solent
That doesn’t mean get rid of the ferries. Just an alternative as well like Skye
London and our Island already have congestion charging, although different! There would be no need to get rid of the charge to cross, just put it to use improving our island facilities, instead of tax payers money that is proving difficult to get. Think if we only had one supermarket on the Island, they could charge what they like for a loaf of bread
Car Ferries thrive on supply and demand
as they only have a certain number of spaces to fill, basically no different to one supermarket.
Here we go again…..it’s black hole time of year again….useless greedy money wasting bellends