By Carole Dennett
The Government has confirmed it is “minded to approve” borrowing under Exceptional Financial Support (EFS) for the Isle of Wight Council, giving permission for the authority to take on up to an additional £12.9 million of debt in 2026–27.
The confirmation came in a letter from Local Government Minister Alison McGovern, who said the support was intended as a “time‑limited and temporary measure” while councils transition to a new national funding system.
The Minister said the council must undergo an external assurance review before the final decision is made. The review will examine the authority’s financial position, governance, and plans for recovery, with the Government reserving the right to widen its scope. Councils receiving EFS are also expected to “avoid or minimise the need for new borrowing” and use money from selling capital assets wherever possible.
In response Council leader Phil Jordan (picture warned residents that EFS “is not new funding. It is not investment. It’s not a grant. It is permission to take on debt.” He added: “Borrowing is not fairness… Debt simply kicks the problem further down the road.”
Cllr Jordan argued that the Island continues to be disadvantaged by national funding formulas that fail to recognise the unique costs of delivering services across the Solent. “We cannot sustainably run Island services on mainland funding formulas,” he said, noting that independent reviews have repeatedly supported the case for a bespoke settlement which governments of all political colours have ignored.
While acknowledging that EFS may prevent an immediate crisis, he said it does not address rising pressures in adult social care, children’s services, SEND or homelessness. “Borrowing is the consequence of Government failure, not council mismanagement,” he said.
He promised to continue campaigning for a fair funding settlement, adding: “This is not the end of the conversation. This is the beginning of a renewed fight for fairness.”
Mal Butler