The Isle of Wight could miss out on a share of £180million in potential regional funding following the Government’s decision to delay mayoral elections until 2028, according to Liberal Democrat candidate Martin Tod.
Mr Tod, who is standing to become the first Mayor of Hampshire and the Solent Combined County Authority (HSCCA), has criticised the decision to reject calls for the election to be brought forward to May 2027.
His comments follow the Government’s Budget announcement yesterday (Wednesday), which confirmed plans to give elected mayors greater control over business rates collected in their regions.
Under the proposals, Mayoral Strategic Authorities will receive a share of business rates income from April 2027, alongside a 20% share of future growth in business rates revenues.
However, with Hampshire and the Solent not due to elect its first mayor until May 2028, Mr Tod fears the region will miss out on funding that could otherwise have supported local priorities.
Martin Tod, Liberal Democrat candidate for Mayor of Hampshire and the Solent, has said:
“This is a big disappointment and, based on today’s budget announcements, Hampshire and the Isle of Wight will lose out heavily.
“In 2027, areas with Mayors are set to keep around 20% of all the business rates collected in their area to spend locally – but we won’t get that.
Article continues below this advertisement “That’s around £180m which could have come to us locally to spend on building local skills, supporting local businesses, improving local infrastructure and protecting our local environment – much of which will be going into a central government pot instead.”
The £180million figure quoted by Mr Tod relates to the wider Hampshire and Solent region, including the Isle of Wight, rather than funding specifically allocated to the Island.
While the Budget confirms plans to devolve business rates income, it also states that the new arrangements will replace certain existing funding streams, including investment funds and local growth funding.
It is therefore not yet clear how much additional funding the region would have received had a mayor been elected in 2027, or what proportion could have been invested on the Isle of Wight.
The mayoral election was originally expected in May 2026 but was postponed until May 2028 amid plans for local government reorganisation across Hampshire.
Following changes to the reorganisation timetable, regional leaders called for the election to be brought forward to May 2027, but ministers have rejected that request.
The delay has already prompted concerns over the combined authority’s existing devolution funding arrangements.
Under its agreement with the Government, Hampshire and the Solent is due to receive investment funding worth £44.6million annually for 30 years.
However, until an elected mayor takes office, the Government is providing 40% of the annual allocation, equivalent to approximately £17.8million.
This represents a difference of around £26.8million annually, or more than £500,000 a week, across the region.
Mr Tod has also expressed frustration that the Liberal Democrats will have to wait another year to contest the mayoral election.
He added:
“I and my Lib Dem colleagues were also ready to go.
“In May this year, in local elections across Hampshire and the Isle of Wight, the Liberal Democrats beat all the other parties to win more seats on more councils than any other party.
“Reform were close behind – but we were ready to take them on and win next May.”
The Government’s wider Budget proposals include plans for local and regional government to retain all business rates income by the end of the decade, with local authorities eventually retaining at least 70%.
Mayors are also expected to receive a share of income tax from 2028, while new funding arrangements are intended to give regional leaders greater control over economic development and investment.
For the Isle of Wight, the elected mayor will form part of a regional authority overseeing devolved responsibilities including transport, skills, housing, strategic planning and economic growth.
The first mayoral election for Hampshire and the Solent remains scheduled for May 2028.
