UNISON, the public services trade union representing 1,000 staff at the Isle of Wight Council, is expressing major concern about the implications for services and jobs as a result of the current funding crisis facing the Local Authority.
As previously reported, it is increasingly clear that the Council is facing a massive budget shortfall as a result of Labour Government’s new fair funding formula.
Despite the evident need for greater resources to meet the needs of Islanders, and the ongoing efforts of the Council and MPs to highlight the need for an Island Deal which takes account of the inevitable additional costs resulting from being separated from the mainland by sea, the proposed financial settlement will actually massively reduce the money available over the years ahead.
The exact implications for jobs and services will become clearer following the meeting of the Council’s Policy, Finance and Resources Committee to be held on Friday with the final budget being agreed next week by the Full Council.
However, it is clear that there are serious implications with the projected structural deficit for the year ahead being in excess of £20million. This situation is pointing to the need for at least £1.25m in staffing reductions over a full year going forwarding – equating to a loss of at least 30 full time equivalent posts across the Council. There is inevitably massive unease and uncertainty amongst the whole workforce as a result.
Current projections indicate that this deficit is likely to rise to £39m in 2027/28; £55m in 28/29 and a massive £64m in 29/30. In these circumstances, the Council is being driven into a situation where it needs to apply for exceptional financial support (EFS) from central government in order to preserve essential services and secure local authority jobs. The EFS would essentially be a loan of around £13m to be repaid over 20 years. An approach along these lines is likely to be crucial to avoid a scenario in which the Council would essentially be bankrupt with the need to apply for a Section 114 notice.
Mark Chiverton, Secretary – IOW Local Government Branch, has said:
“UNISON fully supports the ongoing efforts of the Council leadership and local MPs to highlight the need for an adequate financial settlement from Central Government which takes account of the Island’s exceptional circumstances.
Article continues below this advertisement “There has been a consistent failure to recognise the unique challenges resulting from the Island’s particular demographic and the obvious additional costs resulting from our being an Island. Well over £100 million in real terms has been cut from IWC expenditure since 2010 and the latest financial settlement is another hammer blow. Services for Islanders have already been decimated and are operating on a shoestring. Staff are badly over-stretched with a vacancy freeze in place. The threat of dozens more redundancies is very frightening with potentially disastrous implications.”
“It’s essential that the Council continues to engage in the fullest possible consultation with recognised trade unions” said Patrick Young (UNISON South East Regional Organiser). “Everything possible must be done to avoid the need for a Section 114 notice in which yet more draconian cuts would be enforced by Commissioners appointed by Central Government rather than decisions being made by democratically elected local representatives. In these circumstances we support the proposal of an application for Exceptional Financial Support and look forward to further urgent discussions designed to minimise service cuts and job losses”.
Joint meetings have already taken place between management and UNISON to consider measures designed to minimise the need for compulsory redundancies and these will continue over the weeks ahead.
“There is inevitably massive unease and uncertainty amongst the whole workforce as a result.”
Welcome to the real world where businesses are going bust every day, most especially in the hospitality sector which is very serious for the Island.
Since 2021, Northampton, Slough, Croydon, Thurrock, Woking, Birmingham City and Nottingham City Councils have all applied for 114s.
In the good old days, we had what were known as “Rotten Boroughs” and to the extent that they were few, they did not present any serious problem.
However, since the glorious Blair years, Cameron, May, Johnson, Truss, Sunak and now Starmer have led “Rotten Government” and have put the welfare and safety of the UK and its people at the bottom of their list of “priorities”.
In a poignant reference to the words of my old neighbour, Neil Kinnock, I suggest that things will only get worse.
Very good post and it never ceases to amaze me that councillors who struggle to manage their own household budgets or have a string of failed businesses behind them can overnight be profiicent in overseeing multi million pound budgets, it is a recipe for disaster as the IOW council and others prove.
They are not needed. A.I could do their jobs much better.
The country would save billions of pounds in
Salaries and Pensions
Sorry, but all the time six-figure contracts are placed to maintain the floating bridge for three years when the decision to replace it has been made, and councillors’ expenses are increased, then I take ‘financial crisis’ with a pinch of salt.
Last June this paper reported the council failed to collect £22 million pounds in unpaid council tax. So more of a failure by the IOW council financial department, than a budget issue.
Probably because they are still shirking from home
since the pandemic.
It is amazing the amount of Civil servants in the country
STILL don’t go into the Office.
About time councils over the UK started living in the real world with there astronomical wages, perks and using up near to 16% of our council tax for there inflated pensions
Whilst, in normal circumstances, any job losses are bad news for individuals, I have to say that 30 jobs at risk, THREE percent of the workforce numbers quoted is hardly a devastating blow to overall numbers. Also, bear in mind that the £1.25 MILLION saving which threatens 30 staff, equates to an average pay of the better part of £42k per person.
I for one would love to have that on my payslip. I appreciate some are higher paid than others, but there is a hint of ‘crying Wolf’ here!
Sorry to sound so brutal, but as others have said PROPER Businesses are struggling with increasing Tax and Staff costs and businesses are cutting back on staff if not having to close completely.
welcome to the REAL world.
It is amazing the amount of Civil servants in the country
STILL don’t go into the Office.
Start at the top paid wage and work down ,pay less for the top nobs .to many managers over seeing mangers that over see supervisor that over see the really worker,who take the flack from us..and I bet its the real worker that’s first out..and then these cuts are only so what nobs are left at the top get the pay rise later in year…I dread to think how they control there own finance’s…oh but they can!! why ? Cos its coming from there pocket and not someone else’s..no care taken on how when or where our money is used cos its not there money to care…
With A.I many of these jobs are no longer required
A.I. can do the jobs more efficiently, no sick pay
or extortionate pensions etc etc
Then they can reduce our council taxes etc.
They are milking it while they still can, time is
running out for them.
1000 employees? That’s 30 million + without Island Roads doing all the physical work, What does our chief exec really do with contracting so much out.
Island roads and physical work
Lol
You obviously don’t see them parked up along
Seafronts on a daily basis sitting in their vehicles
They have longer lunch breaks than they do breakfast
breaks.
I WONDER HOW MUCH TIME IN A DAY AN ISLAND ROAD
OPERATIVE ACTUALLY WORKS!
I estimate 45 minutes and I am being generous
It’s no wonder it’s takes ages to carry out road repairs.
Can someone from the council please explain why they spent £152,000 on a court case to defend Captiva’s planning application for West Acre Park? – surely the council should ask Captiva to repay this?
It does make you wonder what goes on behind closed
doors.
Sounds like someone has dirt on someone!.
A perfect example. What the hell was going on there?? Also, it’s about time that council employees stopped retiring ten years before the rest of us are allowed to. The council pension bill is what is really killing off local authorities right across the country.
We are now living in a world where many employees
are not needed.
Yes you need tradesman, carers and nurses etc
but many office jobs and store staff are no longer required
A.I. can do their jobs more efficiently.
A.I
Doesn’t go off on sick leave
Doesn’t shirk from home
Doesn’t ask for a pay increase
Doesn’t need time off for Maternity or Paternity leave
Doesn’t need a pension
A.I is an Employers dream come true.
With self service in stores and decent coffee vending
machines etc, who needs till staff or barristers.
From what I have tasted in many coffee shops
you cannot beat the Costa Coffee machine in Tesco
petrol station.
Time for job losses, unions are old fashioned and are not
in current times.
With A.I unions and human resources are no longer
required – all replaceable with A.I
So, 20m deficit, and they are talking about having a new floating bridge built, which if left to those in charge last time will be another ballsup