The Isle of Wight’s MP has said he is “not happy” with the amount of money his government has given the Isle of Wight Council to spend next year.
It comes as the authority’s finance director said it was now “inevitable” it would have to make £3 million of savings and the leader said government was “financially strangling” the Island.
The local government finance settlement was revealed in December, and compared to what the Isle of Wight Council had predicted, the authority will be £400,000 worse off.
When asked about the settlement, Bob Seely, the Island’s Conservative MP, has said he was not happy with it and he will continue to fight for a better one.
He said:
“I persuaded government to allot the council an additional £1 million last year and that additional payment has continued. However, I would like more support.
“A better deal for the Island has never solely or even largely been about the council’s funding settlement although clearly I would like more funding for the council and I am hopeful that we can get additional funds.”
Mr Seely said getting a better deal for the Island is not a “one-off” bag of money for the council but a better deal all the time.
He highlighted some of the funding the Island has received since 2017 — the year he came into office — which included £48 million for new wards at St Mary’s Hospital in Newport; £46 million for the railway and pier rebuild; £25 million to rebuild much of the Isle of Wight College and £20 million in the Town Fund for Ryde.
He said the money gets better healthcare, better jobs and better life chances for Islanders.
Along with the bankrupt Thurrock Council, the Isle of Wight Council received the lowest funding percentage increase of all unitary authorities, as the price of providing services on an Island was not recognised, despite hopes it would be.
Known as the ‘Island Deal’ the extra funding has been something the Isle of Wight Council has been searching for for years, as the added price of providing services on an Island currently stands at more than £6 million a year.
Provisional figures have revealed the council will get around £36.4 million in 2024/25 to provide the services of the day-to-day running of the authority, with only £1 million in recognition of providing services on the Island.
Speaking at a meeting last night, Cllr Phil Jordan, the authority’s leader, said he was thankful for the money towards the council’s larger projects but the real problem was the revenue funding, which pays for the day-to-day running of council services.
After the meeting, Cllr Jordan said the government had confirmed in writing the Island had a case for extra funding but nothing new arrived in the settlement.
Instead, he said, the council “again saw a year-on-year reduction in funding” which means it is “forced to cut services, increase charges and increase council tax simply to balance our budget.
“The government is financially strangling our Island, our people and our communities and we deserve better,” he said.
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