A near five per cent rise in council tax is on the cards for Islanders as the Isle of Wight Council looks to set its budget for the forthcoming year.

Proposals for the 2023/2024 have been published today (Wednesday), as the council seeks to make a balanced budget.

The council has said it is faced with "significant" financial challenges.

Estimated unplanned cost pressures are around £20m, the council said, representing more than 12 per cent of its overall net budget and a ten-fold increase in the level of planned savings for 2023/24, which were originally set at a level of £2m.

As such, the council is proposing to increase its council tax by the maximum amount allowed, meaning a rise of of 4.99 per cent. Two per cent is ringfenced for adult social care.

It means a household living in a Band D property would be likely to see their bill increase by £1.66 per week (£86.46 per year).

A reduction in some services is also likely, as are increases to some fees and charges to council-run services.

The council is blaming the effect of the war in Ukraine, the continuing impact of COVID and the turbulent national economic environment has created a very difficult situation, the local authority said.

Councillor Chris Jarman, Cabinet member for strategic finances, said: "The scale of the challenges faced in reaching a balanced budget demanded extraordinary efforts from all involved and a recognition that it was better we remained to represent the Island residents and businesses with the difficult decisions required.

"Surrendering to the situation as other authorities have had to do was unthinkable being a betrayal of those we represent.

"We know that the current cost of living crisis is creating intense pressures and we will continue to support residents wherever we can. In particular we have prioritised support to adult social care and children’s services which, coupled with honouring our undertaking to increase council tax support, directs help to those most vulnerable.

"We know residents are facing with the increased cost of living and so proposing a rise in council tax has been a very difficult decision. The alternative would have been to make significant cuts to core council services at a time when many people depend on them for support."

Over the past 12 years, the council estimates it has had to find consequent savings of £93 million.

Today's budget papers outline how the authority plans to bridge the funding gap — the difference between what money is available and what needs to be spent.

In addition, the authority is forecasting the need for savings of a further £6m by 2026/27.

An organisational redesign of the council is proposed, with the aim of saving £1.2m.

The proposals also include an uplift in the council's local council tax support scheme, from 65 per cent to 70 per cent, in addition to extra funding to support the provision of housing affordable for Island residents.

Budget proposals will be voted on at Full Council on February 22.