Waste Contract Cost Surge Adds To Isle Of Wight Council’s Financial Pressures

The rising cost of providing waste services across the Isle of Wight is being addressed by the council, as new figures reveal a significant increase in the contract’s annual cost.

According to the authority’s latest budget report, a £6.5 million surge in waste management costs — forecast to climb to £9 million by 2027/28 — is one of three key factors contributing to what County Hall describes as “serious financial distress”.

The council is currently facing a £20 million structural deficit for 2026/27.

In December 2025, the council confirmed that waste services will transfer from Thalia Waste Management from 1 April this year.

A council spokesperson said updated financial information received during the transition process has shown that overall annual waste management costs are higher than originally budgeted, based on the contract sum agreed in 2015.

They said a plan is now being developed to significantly reduce costs ahead of entering into a new long-term contract in around two years’ time.

In the interim, terms are being finalised with Veolia, the French multinational waste, water and energy services company, to take over management of the waste contract while the council prepares and completes the re-tendering process.

The budget report states that the council’s financial position has deteriorated rapidly due to what it describes as “unforeseen events” within a short timeframe.

Alongside the waste contract issues, the report cites escalating social care costs and substantial reductions in government funding through the Local Government Finance Settlement as the main drivers behind the authority’s current financial challenges.