Charges, Cuts And Council Tax Rise - Isle Of Wight Council's 2021/22 Budget Revealed

A near 5% rise in council tax, cuts to services and extra charges are among the ways the Isle of Wight Council plans to save money in the forthcoming year.

In proposals announced today (Wednesday), the local authority has forecasted savings of £3.5 million for 2021/22.

The council is planning to make up 89% of the money through 'efficiencies and income generation'.

If approved, it will mean a 4.99% increase in council tax - three per cent will go towards adult social care and 1.99% for all other service demands.

Last year, council tax was increased by 3.99%, with two per cent going towards Adult Social Care.

24% of the £3.5 million will be achieved through additional income, and 11% will be through service reductions.

This includes:

• A 7% increase on crematorium and cemetery costs.
• A rise in overnight parking charges (£1 to £2 from October 2021).
• Partially reducing opening hours at Dinosaur Isle Museum, Sandown and Newport Roman Villa.
• Closure of Lord Louis Library, Newport for one day a week, and closure of the declining mobile library service by helping users to switch to the home library and online services.

Speaking about the potential rise in council tax, cabinet member in charge of finances, Cllr Stuart Hutchinson, said:

"Virtually every council we are aware of, that has similar cost pressures arising from adult social care and also education services, has to take a similar decision.

"There is also the practical point that even if we were swamped with money, and I can tell you we are struggling to meet the statutory demands. If the Government say to us 'you can raise this much money to help with your costs' and we say 'no we're not going to do that'. Then we go back to them and say 'we need the Fair Funding Review so you need to give us some extra cash'. They'll say well you haven't actually used the money available to you in the best possible way.

"It is going to be difficult for some families. We have thought long and hard about the amount of money that we need to raise."

Controversial changes to the Local Council Tax Support Scheme were already approved in January. This has seen a reduction in the level of support from 70 per cent to 65 per cent.

The council says a vital hardship fund will continue for those in most need, with more funding due from Government.

The coronavirus pandemic had meant the Isle of Wight Council was left with a funding gap of around £8 million in this year's budget.

A combination of Government funding and the council's Deficit Recovery Strategy has reduced that blackhole to £5.5 million.

The council anticipates it will have a 'balanced' budget by the end of this financial year (March) and will not have to dip in the forthcoming budget.

Council leader, Cllr Dave Stewart, said:

“Islanders have shown unbelievable humanity, community spirit and resilience during this pandemic — and we are determined to be at the heart of delivering a recovery which our residents are owed and deserve. We intend to invest for our collective futures as we look to the year ahead and beyond.

"What none of us knew 12 months ago was just how the coronavirus pandemic would impact on all our lives or the extent to which the council’s financial position would be put to the test.

"One year on, the virus has significantly impacted all of our lives and dominated everything we have done. We have found ourselves having to deal with perhaps the most challenging circumstances that local authorities have had to face and in which to try to set a lawful and balanced budget for the coming year.

"Today, however, we are able to present a lawful and balanced budget and a budget strategy for the next three years which underpins our ambition to keep the Island safe and to be able to rebuild our Island economy."

A new £14.2 million COVID contingency fund has also been established to help the council deal with the pandemic's future impact.

The council has also pledged to invest £56 million pounds in Captial projects. on the Island. This includes:

• £40.7m for Coastal Protection Schemes to protect homes and employment
• £6.4m investment into School Buildings
• £2.9m for the Branstone Farm Development
• £1.9m for Disabled Facilities Grants, helping people to remain in their homes
• £1.3m for Highway improvement and safety schemes
• £1.2m for core IT infrastructure and digital transformation across Council Services
• £750,000 to provide funding for Compulsory Purchases of property in order to guard against blight or facilitate regeneration / development

This year's budget proposals will go before Cabinet members on February 11.

Full Council will vote on plans on February 24.