The Isle of Wight Independent Administration Executive and Councillors have made clear the ‘stark situation that the central government is putting the Isle of Wight Council in’ as it looks to save £17million from its 2016/2017 budget and a further £26million over the next two years.
The financial settlement published by the Government before Christmas imposes a requirement that the Isle of Wight Council saves £17m from its budget in 2016/17 and a total of £26m over the next two years. This comes on top of savings of £50m already made over the last five years leaving a remaining budget of £124m from which the further savings need to be drawn.
The Budget Paper published by the Isle of Wight Council for consideration at the Full Council Meeting on 20th January is to inform Councillors and the public of the financial situation they are currently in and of those matters that have to be considered in order to deal with the situation.
Jonathan Bacon, Leader of the Isle of Wight Council and Leader of the Independent Group of Councillors said:
“The fact that a number of utterly unpalatable possibilities are having to be identified in the Paper that has been published essentially illustrates the stark situation that Central Government is putting the Isle of Wight Council in. The items have not been chosen or selected by the Council’s Administration but simply represent what the work to date has identified as being potential ways of meeting the financial tourniquet placed around the Council’s throat.
“Between now and February 24th when the Council’s budget must be fixed, consideration must be given as to how we construct a budget from the list of remaining services that have been identified. It is not a task that any members of the current Administration look forward to.
“In addition we have to identify ways in which we can deal in the longer term with this financial crisis. At the moment we cannot see how we can set a legal budget in 2017/2018. It may be that direct legal challenges to the Government’s actions become necessary.
“The approach of the Government is effectively putting at risk the future viability of the Isle of Wight Council. Our concern is that, at its most basic level, the Council has the responsibility and duty of providing essential services for children and vulnerable adults. While we can maintain these for now, although not in the form we would ideally like, the Government, by its financial treatment of the Council, is putting those services at risk and attacking these most vulnerable members of our community which should not be tolerated.”
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On Monday the Island’s MP, Andrew Turner, raised the Council’s financial woes in the House of Commons.
Cllr Bacon, Council officials and the Island’s MP met with the Minister for Local Government, Marcus Jones MP last Wednesday to discuss the impact of the recently announced provisional local government finance settlement on the council’s ability to continue to operate and provide services to and on behalf of the island’s community.
In the meeting, which was facilitated and attended by the Island’s MP Mr Andrew Turner, the council’s representatives made these points to the Minister, and sought his support to ensure that the Island can continue to be financially sustainable in the future.
The Minister was understanding of and acknowledged the council’s challenging financial position and in particular accepted that the Island’s has unique circumstances limiting the opportunities to respond to these challenges.He agreed to ask officials from the Department for Communities and Local Government (DCLG) to visit the Island to gain a more in depth understanding of the council’s financial position and the likely outcomes on the Island and its community of the budget decisions it is likely to have to take as a result of the Government’s financial settlement. He was unable to make any commitments to providing additional funding to the council so it can continue to deliver the services needed by the community at the meeting. He did however undertake to consider whether the finance rules which prevent the council using its capital receipts (from the likes of the land sale to Asda) to support projects to transform the council and regenerate the Island’s economy.
