The Isle of Wight Council is not heading for bankruptcy, its finance lead has said, after members faced ‘significant financial challenges’ while drawing up its spending plans for the year ahead. The Alliance Administration recently announced its budget plans for the Island with a 4.99% council tax increase for residents. Among spending plans and saving initiatives, it is also proposed the authority heads into the next financial year with a £1.2 million structural deficit, which will then have to come out of the council’s reserve fund. Answering to the authority’s scrutiny committee on Monday evening over the administration’s budget proposals, Councillor Ian Stephens, the cabinet member for finance and housing, said they had tried to be pragmatic with diminished funding and he would not forgive anyone for saying the authority was a “sinking ship” heading for bankruptcy. He said:
“The financing of local government is a concern nationally. We are living in challenging times, and we could do with more money, but it is not helpful for people to say we are backs against the walls or going under. “We are not near a section 114 notice through the skill and prudence of our staff and members not being outlandish with what we are trying to achieve. “We have a steady ship at this moment in time and are heading in the right direction.”
Councillor Stephens said the Alliance had bought forward savings to alleviate the deficit further and noted the financial forecast put forward in the next three years would bring the deficit down to zero. The director of finance, Chris Ward, said officers always have a rolling forecast of the authority’s finances and while it may show a structural deficit this year, moving ahead to 2025, the council will have a structural surplus of £2.9 million. While the council has not received any confirmation about whether the additional £3 million given to the Island this year will continue, Mr Ward says that money is part of his forecast and if necessary, will continue to campaign for the funding. Concerns were raised about the amount of ‘wiggle room’ the authority would have in its reserves moving forward, with only a gap of £2.9 million before the council is automatically issued with a section 114 notice, which effectively declares itself bankrupt. Mr Ward said the council is stable but admittedly fragile. Overall, he said, the budget is robustly based and has provisions for potential risks — including a £5 million COVID-19 legacy contingency and £4.2 million corporate contingency. Opposition groups will have a chance to present alternative budgets and amendments at the full council meeting on February 28, when the final figures will be set.
Is it a surprise over 7.7 million spent on the floating disaster £900,000 spent on refurbishing their own office in Newport £765,000 spent on a website they are out of control
In other words they are heading down the pan. Stop paying out for “special” kids to get a taxi to school, make the parents pay, stop paying out for a rubbish floating bridge, stop giving yourselves a nice fat pay rise and bonuses, and scrap the reintroduction of this stupid hardship fund nonsense.
proposed the authority heads into the next financial year with a £1.2 million structural deficit, which will then have to come out of the council’s reserve fund.
And they plan to spend £860k on the natwest building – you couldn’t make it up with this lot
We are not near a section 114 notice through the skill and prudence of our staff
ha ha ha
prudence isn’t a word I would associate with anyone in a tax payer funded job.
they spend over a million a year on taxi’s for kids to go to school, who are allegedly special needs – their parents should pay it all.
they spend over a million a year on care for just three kids – they don’t need that much.
they spend money on illegal immigrants that turn up here – ever noticed the amount of them wandering around the islands towns now, in winter, when normally it is just islanders here.
they hand out money to every sob story going, instead of simply saying – get a job, stop whining, stop sponging and P%ss off.
They found £2.75 down the back of the sofa, so we’re good again.
What a state! Money squandered on utter rubbish while the REALLY important services go to ruin.
What about all the ‘secret’ spend of finances the people of the island are not allowed to know about? The last 10 years from County Hall have been the worst on record. Nobody believes these news soundbites, the situation is worse than ever before in the history of the island.
I don’t trust any of them. Nor should you.
I don’t expect IW COUNCIL to go Bankrupt
No.1 one of the most expensive Council taxes in the country.
No.2 extortionate charges to have a p*ss
No.3 24/7 364 days a year Parking charges
No.4 G’estapo Enforcement Officers slapping parking tickets on motorists
like confetti.
“We have a steady ship at this moment in time and are heading in the right direction.”
Yes, straight towards the Needles…..
Let’s hope the steady ship is not like the Floating Bridge
Sinking like the S.S Titanic
Lol
Managed to buy a new abacus then !
Its nice to know the ship is not going to sink yet
Time to re-site the council executive offices on the Military Road.
Before I move off the the Isle of Shite in two years time I want to see those council offices demolished.