The COVID-shaped black hole in the Isle of Wight Council’s finances has reduced but ‘difficult’ work has already started preparing the budget for next year.
The Council’s Cabinet was told the £10million funding gap is now down to £8million thanks work done to repair the financial damage.
Earlier this year, the full council approved a deficit reduction strategy which paused renovation projects to council offices, additions to the fire fleet and took money from the council’s reserves – creating nearly £11.5million to cover the costs.
With work underway to retrieve all the money and further funds coming from central government, including a scheme that will see up to 75p of every £1 of lost income returned to the council, the gap is slowly closing.
If the budget is not balanced at the end of the financial year, in March, the money has to be found in the council’s already stretched budget for 2021/22.
Despite the current issues, work has started on the budget for next year where £3.5 million will need to be put away as part of the council’s saving targets — hoping to set aside £10.5million in its next three budgets.
Cllr Stuart Hutchinson, cabinet member for strategic finance and the covid-19 recovery, said:
“I don’t need to remind everyone how challenging that will be.
Article continues below this advertisement “Fortunately, over the last four budgets we have done, we have been able to bolster our reserves and that has been enormously useful carrying us through this period.
“That is not to underestimate how difficult will be — we still need government support but we won’t know what that will be.”
Cllr Hutchinson said no major announcements about the budget would be made before Christmas.
The hole would be a bit smaller if they hadn’t voted themselves a payrise of £200.
It would also be smaller if they cut their cocaine budget. But that will never happen.
The money for the 21/22 stretched budget will be included in our council tax increase. How much will be very interesting.
Hard part for budget discussion is how to cover up the floating bridge debacle. More record breaking poll tax rises to cover losses. How long before an extra charge to collect the dustbins?
Stop giving yourself bloody payrises its not rocket science whuuuups sorry council it is rocket science to you lot