By Isle of Wight Observer
Government claims that the Island will see a 16 per cent funding increase in its latest funding settlement have been challenged by the Isle of Wight Council. Ministers say the council’s “spending power” will rise from £187 million to more than £217 million.
An IW Council spokesman said: “We are extremely concerned about the Provisional Settlement. This multi year deal represents a funding reduction of £13.4m over three years – a cut of 3.6 per cent next year, rising to 15.1 per cent by 2028/29. For 2026/27 alone, the reduction is £3.2m.”
The council argues that the government’s definition of Core Spending Power includes locally raised Council Tax, not just government funding.
While the settlement suggests a £5m increase in 2026/27, this is largely due to £8.2m from Council Tax, masking the real cut. The council says it will make strong representations to secure the best outcome for the Island.