A YEAR ago, no one could have foreseen just how much of an impact coronavirus would have had on the Isle of Wight.

It has affected so many aspects of the Island's economy, wellbeing and future — and that was laid bare in the Isle of Wight Council's budget proposals, revealed yesterday (Wednesday).

Underpinning many of the decisions was, in council leader Dave Stewart's words, the need to "rebuild our Island Economy — with a clear plan of recovery from the impact of Covid-19."

He outlined: "What none of us knew 12 months ago was just how the coronavirus pandemic would impact on all our lives or the extent to which the council’s financial position would be put to the test.

"One year on the virus has devastated all of our lives and dominated everything we have done.

"We have found ourselves having to deal with perhaps the most challenging circumstances that local authorities have had to face and in which to try to set a lawful and balanced budget for the coming year.

"In addition we know it is not over yet — and although the Covid-19 vaccination programme should be the start of improvements, it is without doubt we are going to have to deal with the long term impacts of Covid-19 on the council's finances for many years to come.

"So the clear and decisive action taken by the administration during this year to agree a deficit reduction strategy to deal with the potential financial impacts of coronavirus on the council's finances, has proved to be an essential and prudent course of action in helping us to manage the 2020/21 budget, but also in building some resilience for the 2021/22 budget and beyond."

Among the pledges is provision of a Covid Support Reserve Fund of £14.2 million, to help mitigate the long-term impacts of Covid 19, be they economic challenges, mental health and wellbeing needs or other as yet unknown Covid related pressures.

Cllr Stewart said: "The figure of £14.2 million is just three quarters of the Covid related amount needed in the current year and we hope it will be sufficient to see us through the next three years – but that is by no means certain.

"Our actions in rebuilding the council's reserves by over £6m over the last three years, for use in extreme times has also proved essential to the budget now being proposed. Extreme times are now upon us and we must respond accordingly."

As part of this, a council tax increase of 4.99 per cent has been proposed.

Read more: Cutbacks as part of the Isle of Wight Council's budget.