A stark warning has been issued over the bleak financial future of the Isle of Wight Council, with a warning that ‘some extremely difficult decisions’ will be required.
It’s said that action will need to be taken to address a funding gap which could reach over £60million in a few years’ time, according to a senior officer.
In a bleak update at County Hall on Thursday (9th July), deputy chief financial officer Adam Richens pointed to a graph forecasting a growing structural deficit for the local authority which he said he ‘saw a lot’ during the ‘austerity years’ of the last decade.
He referred to 3 main drivers of the shortfall: the rapidly escalating costs of adult social care, the doubling in cost of the council’s waste contract and cuts in government funding which will get ‘significantly worse’ in the following 2 years.
Presenting the graph to the policy, finance and resources committee, Mr Richens said:
“That (funding) gap is £20 million for 2026/27. It will double in the next year to £40 million if we leave it unchecked.
“It will then grow over the three-year period so by the time you get to 2029/30, you have a structural deficit of £66 million.
“I’ve been a Section 151 officer for quite a number of years and I saw that graph a lot with regards to expenditure going up but funding going down, staying the same, during the austerity years.
Article continues below this advertisement “That was a common graph that was presented up and down the country with regards to the impact of austerity.”
He said the council is ‘back into that position’ in terms of the future, left unchecked.
The officer continued that given the structural deficit, County Hall ‘rightly’ applied to government for Exceptional Financial Support (EFS) which he claimed was the ‘only way’ to set a ‘responsible and lawful’ budget for 2026/27.
EFS gives councils government permission to use capital budgets, borrowing or asset sales to fund day-to-day spending, according to the Institute for Government.
Mr Richens said the EFS process is akin to an ‘emergency government bailout’ and that Whitehall has given the Isle of Wight Council an in-principle decision for £12.9 million of EFS in 2026/27 only.
The EFS will only be drawn upon if necessary. He emphasised that the facility amounts to borrowing which would need to be repaid, including interest, and is not a government grant.
Current council forecasts show potential EFS borrowing of £175.3million over a four-year period from 2026/27.
Whitehall expects the council to take ‘all reasonable steps’ to manage financial pressures locally and develop a ‘clear’ service improvements and transformation plan to assist a return to financial stability, Mr Richens said.
He said an independent chair has been sourced for a Transformation and Improvement Board.
Moving to next steps, the officer gave 3 pieces of advice: management must be within the budget County Hall set for 2026/27, all reasonable steps must be taken to reduce the £12.9million EFS debt due to be taken out for 2026/27 and address the underlying structural deficit which for 2027/28 is £39.7million.
Has anyone else noticed this seems to be the same story every year with the same headline. We will have the same targets- put up parking fees, put up council tax etc. Joe Public do not have bottomless pockets for all the continuing rises. Try ticketing people that park in the wrong places or against the traffic flow- the amount of that happening will be a start!
GOOD POINT ABOUT PARKING AGAINST THE TRAFFIC FLOW
” YOU HONESTLY DON’T THINK THAT THE STUOID B’STARDS ON YHE ISLAND ARE AWARE OF THAT RULE”
THESE NUMPTIES STILL LET VEHICLES DRIVE AROUND FOR MONTHS WITH NO MOT
THERE’S A NUMPTY IN RYDE DRIVING EVERYDAY WITH NO MOT
NEARLY 3 MONTHS NOW
THE AUTHORITIES COULDN’T CATCH A COLD YET ALONE AN ILLEGAL MOTORIST
So many numpties park in wrong places
Eg
Zig Zags
Double Yellow Lines
Pavements
SOME EVEN PARK FREE OF CHARGE EVERYDAY ON THE
PAVEMENT OUTSIDE THE OLD TOURIST INFORMATION CENTRE OPPOSITE SANDOWN PIER AND FUCK ALL GETS DONE ABOUT IT!
And then the Council get the violin out pleading poverty.
MY ADVIDE TO THE CLUELESS NUMPTIES IS TO REDUCE
THE WORKFORCE, MANY OF WHO SEEM TO TURN A BLIND
EYE TO ILLEGAL PARKING.
HOW MANY COUNCIL EMPLOYEES ARE “”STILL” SHIRKING FROM
HOME SINCE THE PANDEMIC!
STOP FULL SICK PAY, STOP PAY RISES.
AND ROLL OUT ISLANDWIDE PARKING PERMITS
SOME HOUSEHOLDS HAVE 4 OR MORE VEHICLES AND
TAKE UP SPACES FOR OTHER PEOPLE WHO NEED TO PARK THEIR VEHICLES WHEN RETURNIG HOME FROM WORK.
IF EVERYONE HAD TO PAY FOR A SPACE THEY MAY REDUCE THE AMOUNT OF VEHICLES THEY HAVE.
ALSO DUE TO SIZES OF VEHICLES SOME TAKE UP 2 SPACES IN
CAR PARKS AND ONLY PAY 1 CHARGE.
I would have the island re-names Lawless Isle of Joke
GOOD POINT ABOUT PARKING AGAINST THE TRAFFIC FLOW
” YOU HONESTLY DON’T THINK THAT THE STUOID B’STARDS ON YHE ISLAND ARE AWARE OF THAT RULE”
THESE NUMPTIES STILL LET VEHICLES DRIVE AROUND FOR MONTHS WITH NO MOT
THERE’S A NUMPTY IN RYDE DRIVING EVERYDAY WITH NO MOT
NEARLY 3 MONTHS NOW
THE AUTHORITIES COULDN’T CATCH A COLD YET ALONE AN ILLEGAL MOTORIST
So many numpties park in wrong places
Eg
Zig Zags
Double Yellow Lines
Pavements
SOME EVEN PARK FREE OF CHARGE EVERYDAY ON THE
PAVEMENT OUTSIDE THE OLD TOURIST INFORMATION CENTRE OPPOSITE SANDOWN PIER AND FUCK ALL GETS DONE ABOUT IT!
And then the Council get the violin out pleading poverty.
MY ADVIDE TO THE CLUELESS NUMPTIES IS TO REDUCE
THE WORKFORCE, MANY OF WHO SEEM TO TURN A BLIND
EYE TO ILLEGAL PARKING.
HOW MANY COUNCIL EMPLOYEES ARE “”STILL” SHIRKING FROM
HOME SINCE THE PANDEMIC!
STOP FULL SICK PAY, STOP PAY RISES.
AND ROLL OUT ISLANDWIDE PARKING PERMITS
SOME HOUSEHOLDS HAVE 4 OR MORE VEHICLES AND
TAKE UP SPACES FOR OTHER PEOPLE WHO NEED TO PARK THEIR VEHICLES WHEN RETURNIG HOME FROM WORK.
IF EVERYONE HAD TO PAY FOR A SPACE THEY MAY REDUCE THE AMOUNT OF VEHICLES THEY HAVE.
ALSO DUE TO SIZES OF VEHICLES SOME TAKE UP 2 SPACES IN
CAR PARKS AND ONLY PAY 1 CHARGE.
Off out to walk the dog on the beach before some Numpty
says you can’t when you can on the beach I am going to.
Lol