IW Council to recruit new finance chief amid £65m deficit fears

The Isle of Wight Council is seeking approval from the Appointments and Employment Committee (A&EC) to start the formal process of recruiting a new Strategic Director of Finance and Deputy Chief Executive – an appointment that will also include the statutory financial responsibilities of Section 151 Officer.

The move to appoint another full-time senior officer was recommended in November’s Penn Report, which found that the IW Council has been dysfunctional for a number of years. It also follows the decision to end the decade-long shared finance arrangement with Portsmouth City Council, which will take effect in May, and comes at a time of unprecedented financial strain for the authority. Chris Ward, the Section 151 Officer currently shared with Portsmouth, in 2024/25 received a package worth in excess of £180,000, with the Isle of Wight Council paying £79,950.

The report to the A&EC, which meets next Wednesday, says that the new post, with a salary of £120,535 to £129,500, at a total cost of up to £178,607, is essential to strengthening financial governance, improving organisational resilience, and ensuring the council meets its legal duties. The role will provide senior leadership across financial strategy, audit and risk, procurement, digital services, and corporate transformation, while also deputising for the Chief Executive, Wendy Perera. The report says “Budget is available for this.”

The importance of the appointment is underscored by the council’s dire and worsening financial outlook. The authority recently set a budget that anticipates a £65 million structural deficit within three years. Councillors across the political spectrum have openly recognised the real possibility that the council may be forced to issue a Section 114 notice – effectively declaring bankruptcy – within the next year if there is no improvement to its financial situation. It is the Section 115 Officer that takes the decision to issue a Section 114 notice.

Interim arrangements will be put in place to ensure continuity of the Section 151 function once the shared service with Portsmouth concludes. Failure to secure both interim and permanent cover, the report warns, would expose the council to significant governance risks and potential intervention by the government.