A five per cent council tax increase could be on the cards for residents as the Isle of Wight Council looks at a £12 million gap in its finances.

It comes as County Hall waits with bated breath to hear how much it will get from the government in the year ahead, after missing out last month.

Chris Ward, the council's finance director, had hoped the government's autumn statement, released in November, would provide some financial hope for the authority.

The statement saw the Chancellor of the Exchequer, Jeremy Hunt, announce an increase to the national living wage and cutting the rates of National insurance.

However, an Isle of Wight Council spokesperson said there was nothing in the statement that would provide further relief from the financial pressures the council faces moving into 2024/25.

The authority has also launched its annual budget consultation, where it asks Islanders how they think the council should be spending its money.

The council's greatest financial pressures are in adults' and children's social care — where it is currently looking at an £8.3 million overspend.

Additional funding has been announced for social care but with the expectation some of it comes from an increase in council tax to its topmost limit — of five per cent, with two per cent going towards adult social care.

The Isle of Wight Council, along with other local authorities across the country, is now waiting for the outcome of the Local Government Finance Settlement later this month to understand exactly what it will get from government in the year ahead.

Mr Ward said they won't know how much that will be but do know, even after the increased funding for social care, it will leave a "significant budget gap of around £12 million."

The council's spokesperson said it will now also face added pressure due to the 9.8 per cent increase in national living wage.

The survey asks residents how much they think council tax should be raised, whether they would support an increase in the amount taken for adult social and which services they think are the most important.

It will close on Friday, January 26 ahead of the Isle of Wight Council approving its budget for the year ahead in February.

The survey is at: https://www.iow.gov.uk/council-and-councillors/transparency-our-data/our-finances/2024-2025-budget-consultation/

Other areas causing issues with the council's finances include home-to-school transport and the council's leisure centres.