Isle of Wight Council Targets £40m Savings on Road Deal
The Isle of Wight Council is eyeing a whopping £40 million in savings by tweaking its contract with Island Roads. Officials say this move could chop around £2 million off annual costs for the next 20 years of the 25-year agreement.
Big Savings After Big Improvements
The Council admits Island Roads has boosted the island’s highways big time. But with tight budgets, they reckon they can still save a bundle.
Next week, Cabinet members will review bringing in Jasmine Consulting UK. The firm’s director, Jay Jayasundara, knows the contract inside out — he actually helped set it up back in 2013 and formerly worked for the council.
Expert Review Promises More Cash Back
Jay’s early audits this year flagged potential savings. Council boss John Metcalfe said:
“Although the arrangement with Island Roads has delivered great progress to date, it’s right and proper we look at our big contracts, given they are long-term commitments.”
He added:
“Jay Jayasundara is an expert in this field and with this contract, which he was instrumental in setting up in 2013… His work earlier this year was important in identifying possible savings, which would help the council’s finances moving forward.”
Cutting Costs to Balance the Books
The council faces a £16.5 million savings target over the next three years. Metcalfe stressed:
“It has to be right that we do everything we can to find savings on contracts like these. We’re also keen to ensure our successful partnership with Island Roads continues because it’s clear to everyone how much our road network has improved.”
The current deal, one of the longest public-private road contracts in the UK, has already saved around £5 million since 2013, plus brought unprecedented government funding into the Island.
Costs of the Savings Hunt
The interim review work will cost £70,000. Meanwhile, a full procurement process to support long-term savings could add up to £200,000. The Cabinet is set to meet at County Hall, Newport, at 5pm on Thursday 12 July to decide next steps.
