Fears the Isle of Wight Council could be in dire financial trouble have been calmed by a senior cabinet member.
Councillor Jonathan Bacon, the cabinet member in charge of the Council’s purse strings, said the authority was as confident as it could sensibly be that it can continue to balance its books after a letter was sent out to the media by former cabinet member Cllr Karl Love.
Cllr Love feared the Isle of Wight Council was ‘very’ close to going the same way as Birmingham City Council, the UK’s largest local authority, after it effectively declared itself bankrupt on Tuesday (5th September).
He said he had been warning bankruptcy was on the cards for years with ‘virtually nothing’ coming in funds from Government to support the Island, despite pleas and after years of cuts. Cllr Love said the Council needed a significant sum or ‘it is curtains’ in the not-too-distant future.
While the authority’s financial position could not be described as ‘rosy’, Cllr Bacon said the Council had been given extra resilience after it performed better than expected in the last financial year – making additional savings.
Moving forward, Cllr Bacon said there is already an achievable draft savings programme for next year and they were working to identify and address any potential pressures that might arise due to the difficult national economic climate.
He also said the authority hopes to hear news soon about the Island Deal following the work of leader of the Isle of Wight Council, Cllr Lora Peacey-Wilcox.
The latest financial position, recently published by the council, shows the authority is forecasting an overspend of its £178.7m budget by £3.5million.
The Council has £13million in its general reserves, as of the end of June, but it needs to retain at least £7 million before intervention has to be taken.
Cllr Love said the Council is not keeping up with inflationary pressures, let alone making any kind of advancements, ‘running on the last remaining coppers in the piggy bank’.
He said:
“I feel totally frustrated we cannot provide the best service possible to our residents and we have been forced by this Government to cut everything but the bare minimum.”
Cllr Love left his position earlier in the year as cabinet member for Adult Social Care after he found it stressful trying to make the pounds stretch the extra mile to cover ever-growing service costs.
In this year’s budget, adult social care costs account for nearly 1/3 of the authority’s spending and is already predicted to go over its budget by more than £2.2million.
If you want to cut to the bare minimum
Start by getting rid of island roads and tender the work out to the lowest quote like normal companies do get the normal 3 quotes.
Get rid of none essential council staff of the highest pay.
Stop wasting money on consultations
If you are not competent to do them yourself you shouldn’t be in the job.
Any other workers has to pay their way to get to the workplace place without travel expenses so that insult to tax pays is very wrong
You have enough electric cars the the tax payer paid for that are always parked out side the newport offices so use them instead of travel expenses
The list is endless and you lot are supposed to be top end of clever so use you skills that you are paid for
It’s ok we will bail them out just put council tax up parking charges up and cut loads of vital services that should sort it
Scrap the floating bridge for good rather than keep chucking our money at it
That should save a packet to start with
Stop wasting OUR money otherwise flatting turd. Finances SORTED!
Sounds like being bankrupt for a council is not necessarily a bad thing because it stops them spending on non-essential goods and services, and should bring to an end loss-making commercial services which are run badly.
All these comments you would have hoped had been considered at cabinet, while they discuss income, expenditure and cost savings what they do not mention is how much debt ithe council is servicing, and at what rate they are paying on this, and what is the proportion of debt against income, if these figures are closely matched then the councillor is right , the council is close to bankcruptcy.
Still they fund immigrants and all other ‘victims’ and end up paying for keeping their numerous children and relatives as well as our own chav breeders from puberty upwards so no surprise
Said unemployed, still living at home, Bob, age 54.
Why work in a country who taxes us for everything.
Word to the wise .. don’t believe anything you read from the IWC .. they are experts in smoke and mirrors distraction techniques .. submit an FOI, but this council do not comply with those either .. so your snookered !! Just just trust your instincts..
Set an example cut your expense
How the hell can they be strapped for cash with all the cash flow they’ve had over the last couple of years. Seems to me they need a big shake up of their financial department and replace the many chiefs which are eating into the biggest part of their profits = wages. It doesn’t concern them though to keep pushing up council tax and car parking fees and leaving the general public cash strapped .
If IW Council are skint or are pleading poverty
Charge Households who own more than 2 vehicles parking permits.
With one of the highest Council Taxes in the UK and 24/7 365 days of the year
Parking fees and now we have to pay to use most of the toilets on the island
IW Council are rolling in it.
They are having a laugh.
DO NOT KEEP INCREASING COUNCIL TAX EVERY YEAR,
REDUCE THE AMOUNT OF UNNECESSARY STAFF YOU EMPLOY!