Islanders may not get a direct say on council tax support for low-income Isle of Wight households worth over 10 million pounds.
Amid an ‘unprecedented level’ of financial uncertainty for County Hall’s next budget, officers have said it is critical that the council continues to exercise financial restraint and manage its costs carefully.
The local authority continues to face significant financial challenges, including reliance on exceptional financial support (EFS) – described by the Institute For Government as one of the key sources of funding for financially distressed local authorities – and a forecast structural budget deficit rising to £66.3 million per year by 2029/30.
An officers’ report said suspending consultation on increases to Local Council Tax Support (LCTS) while keeping the current scheme and Exceptional Hardship Fund (EHF) represents the most affordable, least risky and legally compliant approach for 2027/28 and future years where the council relies on EFS.
LCTS helps people on a low income pay their council tax and the level of support Islanders can get is subject to income and personal circumstances. The EHF provides extra support to those in need.
Under current LCTS, working-age claimants are eligible for up to 75% support on their council tax bills.
Though claimant numbers have gradually declined since 2018, the scheme’s overall costs have increased – hitting £11.59 million in 2026.
The report also states that annual council tax increases have made it harder for those claiming LCTS to pay their bills.
Officers have recommended councillors on the policy, finance and resources committee (PFRC) agree not to carry out consultation on changes to the LCTS for 2027/28 and during the period where County Hall needs EFS.
The recommendation is also for the existing scheme to be rolled forward unchanged, subject only to changes required by legislation and administrative necessity.
Officers said maintaining current LCTS avoids extra financial pressures, preserves stability for vulnerable residents, and continues access to hardship support for those experiencing severe financial difficulty.
In addition, the report says there is still an opportunity for the public to have a say on County Hall’s annual budget which includes council tax.
PFRC councillors will meet at County Hall at 17:00 on Thursday (10th September).
