Islanders could soon hear the latest on the ‘perilous financial state’ of the Isle of Wight Council.
The policy, finance and resources (PFR) committee is due a verbal update on the local authority’s finances tomorrow (Thursday) following fears earlier this year that a Section 114 notice – the closest a council can get to bankruptcy – is not far off.
At the end of May, County Hall’s newly elected leader, Councillor Jonathan Bacon, said the biggest issues on the horizon were devolution and the ‘perilous financial state we’re in’.
A report brought to full council in February said the 2026/27 budget, which ultimately included a 4.99% council tax hike and a staff reduction programme totalling £541,000, will be the ‘most challenging ever considered’ for the past ten years.
It cited a structural deficit of almost £20million which if ‘left unattended’ could rise to £65 million by 2029/30.
Three key drivers of the deficit were mentioned: the ‘rapidly escalating’ costs of adult social care, the doubling in cost of the waste contract and a £3.1 million cut in government funding.
In March, senior council officers told the PFR committee a key source of funding for financially distressed local authorities that was referred to in County Hall’s 2026/27 budget plans, Exceptional Financial Support (EFS), may not have to be used.
The passed 2026/27 budget included £12.9 million of EFS, additional spending in adult social care of £14.8 million and children’s services of £3.9 million as well as £6.5 million extra for waste services.
PFR committee councillors are due to meet at County Hall at 17:00 tomorrow (9th July).
