The commitment from Greg Clark MP to undertake a needs-based review which recognises that the Island faces unique costs, has been welcomed by the Isle of Wight Council.
During a meeting with the Island’s MP Andrew Turner, the Secretary of State for Communities and Local Government agreed that it is nearly 10 years since the current formula was looked at thoroughly and that there is good reason to believe that the demographic pressures affecting particular areas, such as the growth in the elderly population, have affected different areas in different ways. The thorough review will assess what formula is used in future in a world in which all local government spending is funded by local resources, not central grant.
The recent discussions followed an earlier meeting with the Local Government Minister Marcus Jones MP. During that meeting the challenges facing the Island over the next few years were set out clearly. Mr Turner also raised the issue during Prime Minister’s Questions last week, and has now received a letter from the Prime Minister recognising the particular challenges faced by the Island. He confirmed that senior officials from the Department for Communities and Local Government (DCLG) will visit the Council to discuss the Isle of Wight’s unique situation and its finance in future years.
The Secretary of State, Greg Clark MP has said:
“Andrew and the Isle of Wight Council working together have made a strong case for the Island and I understand that the Island faces unique challenges. We inherited a funding formula from Labour and within the coalition we could not reach agreement to change it. This Conservative Government is determined to build a fair settlement for local government and the review will consider the costs associated with being separated from the mainland.
“I was also pleased to accept Andrew’s invitation to come down to the Isle of Wight, and meet with local leaders to continue the cross-party approach that has been taken so far”.
The Island’s MP said:
“At long last we have recognition that the current funding formula is unfair to the Island. I had positive and constructive discussions with Greg and he recognises that any new deal must address the costs of providing services here. We also need help with such issues as meeting the needs of the high number of elderly people living on the Island.
“Everybody realises that money is in short supply, but I have the Secretary of State’s assurances that he will find ways to help the Council stay afloat until the new formula is in place. The Government also understands that, as a small unitary authority, we do not have the same officer resources as some other Councils to make our financial case, and we are also being offered assistance with that. On that basis I will be supporting the Government this afternoon.”
Meanwhile the leader of the Isle of Wight Council, Councillor Jonathan Bacon, has today said:
“I am grateful to Rt. Hon. Greg Clark MP and our MP Andrew Turner for undertaking to look again at how the Isle of Wight is funded and I hope that it means they, at last, recognise that there are increased costs that arise from being an Island.
“However, it also does not help us to overcome the current financial position facing the council as we look to set a balanced budget for 2016/17, in the coming weeks. I am also concerned that there are no timescales to completing this review. As I have said before, I cannot see any way the council can set a lawful, balanced budget for 2017/18 based on the current planned funding allocations from government. The review must, therefore, be completed in the next six months for the council and the Island to have a sustainable future and must result in us receiving the funding we currently lack.
“The hope, however, that government may change our funding model to meet our needs is to be welcomed and is more than we have secured from government from any of our lobbying activities over the last few years. Only time will tell whether it will assist us in future years. We look forward to the review and to playing and full and active part in it. We trust that it will produce some tangible figures, which will hopefully form the basis for a secure financial future for the Isle of Wight and its residents.
“In the meantime, we will continue to make our case for this review, and to ensure that this promise is adhered to. Public services on the Island are under increasing and unique pressure, due to increasing demands for our services, increasing burdens imposed by government and a raft of other limitations that being an Island brings. The fight is not won, but this is a step in the right direction, and we look forward to working with Mr Clark to find a resolution that meets the needs and expectations of our Island community.”
“It seems that we have an opportunity to work together to make a compelling case to government. We need to set out the challenges, and their costs, in providing public services to ensure that we can offer at least the same quality of service as those enjoyed by mainland communities. We will need to consider and present views from all sectors of the community about the costs of doing business here, so that we can take full advantage of this, and secure a fair funding settlement for the Island.”
Photograph: The CBI/Flickr
