‘Enormous burden’ due to unfair funding

By Carole Dennett Feb 11, 2025

The leader of the Isle of Wight Council, Cllr Phil Jordan, has issued a stark warning to the government regarding the Island’s funding crisis, saying that it faces a “structural deficit” of over £13 million for 2025/26.

Writing to Local Government Minister, Jim McMahon, Cllr Jordan highlighted the unique challenges faced by the Island, and called for urgent adjustments to the current funding allocations.

Cllr Jordan attributed the deficit to the Island’s separation from the mainland, which significantly drives up service delivery costs compared to similar local authorities. He explained that studies have consistently shown extra costs ranging from 4 to 25 per cent, particularly in critical areas like adult social care, children’s services, and highways maintenance. While the government has allocated £4 million for the forthcoming year in “Island Funding”, Cllr Jordan argues this falls far short of the £23.7 million needed annually.

He emphasised that the council has already carried out extreme cost-saving measures, cutting “further and deeper than most other councils”, including transferring services to town and parish councils, providing no rural bus subsidies, and rationalising assets. Fees and charges have also been increased, alongside maximum allowable Council Tax increases. Despite these efforts, the lack of funding is placing an “enormous unfair burden” on Island residents through higher council tax and unmet needs.

Cllr Jordan called for an immediate increase of £6 million to the Island Funding, taking it to £10 million as a temporary measure, alongside a fair share of the Recovery Fund. Without intervention, the council warns it may have to consider further cuts to vital services. He said: “Government does recognise the funding gap – and have provided an extra £4 million. The trouble is, £4m is not the fair funding we should be receiving. Islanders have done their bit. Shouldered the increased costs and service cuts over the past 14 years, and it’s now time that government recognise the full amount we need and ensure we get that funding without any further delay.”