Financial Management

Our Spending Plans

The council's spending plans are set each year by full council usually at a February meeting. This follows consultation with the public on budget priorities and savings plans.

In 2020/21, the Isle of Wight Council plans to spend £338.3 million on providing services for the Island.

 Portfolio Expenditure and Income Gross Expenditure                      Income Net Expenditure 
   £000's  £000's  £000's
 Adult social care, public health and housing needs  87,526 -35,945  51,581
 Children's Services  27,635  -1,498  26,137
 Community safety and public protection  10,383  -3,118  7,265
 Environment and heritage  7,979  -5,596  2,383
 Infrastructure and transport  7,058  -6,914  144
 Leader and strategic partnerships  1,056  -10  1,046
 Planning and housing renewal  2,511  -1,850  661
 Procurement, waste management projects and forward planning  4,384 -659  3,725
 Regeneration and business development  1,309 -291   1,018
 Resources  100,984  -36,067  64,917
 School's budgets  87,471  -87,471  0
 Total Expenditure  338,296  -179,419 158,877 
 Contribution to/from reserves and balances  1    1
 Budget requirement  338,297 -179,419   158,878
 Net surplus/deficit on collection fund      -595
 Amount to be met from Government grants, business rates and council tax      158,283

 

In additional to its day to day spending the council also plans to invest in capital schemes which support the delivery of its overall objectives. The council has budgeted a total of £44 million in 2020/21 for capital schemes which includes nearly £6 million in schools and children's services.The planned £3.2 million programme of improvement works at the Adelaide, Gouldings and Westminster House continues into 2020/21 which will ensure that these facilities are able to support people maintaining their independence in their own homes. A further £1.7 million investment in disabled facilities grants will provide adaptations to home which will also contribute towards this objective.

The council expects to move into the delivery phase on some of the key regeneration schemes with around £9 million budgeted for 2020/21. Timing will depend on many issues including planning consents which began in 2019/20. There is also continued investment in community led housing funded from the £1.5 million Government grant received in 2019/20. Over £11 million will be invested in key infrastructure and highways improvements including Newport junctions, Newport Harbour, and other highways safety priority schemes. Investment in waste collection and recycling equipment also continues as does the purchase of new fire vehicles. Annual programmes of investment in public realm activities such as rights of way and coastal safety continue, as does the annual investment required to maintain council buildings, ICT equipment and systems. The council will also continue to look for investment opportunities which will generate revenue income that can be used to continue island services.

Further details can be found in the council's medium term financial strategy which is taken to February Full Council  for approval. It brings together the overall revenue and capital budget strategies setting out how the council will resource the key projects, changes and investments for the medium term. It also addresses the redirection of resources over time to balance the budget gap.

The council's treasury management strategy is taken to Audit Committee for approval. The Isle of Wight Council defines its treasury management activities as “the management of the organisation’s investments and cash flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities, and the pursuit of optimum performance consistent with those risks”. Treasury risk management at the council is conducted within the framework of the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2017 Edition (the CIPFA Code) which requires the council to approve a treasury management strategy before the start of each financial year. This strategy fulfils the council’s legal obligation under the Local Government Act 2003 to have regard to the CIPFA Code.