Council tax rise and fewer events as £14m cuts loom
BBCCoventry City Council is proposing to make cuts of almost £14m next year but has ruled out declaring itself effectively bankrupt.
The Labour-run council said stark savings were necessary to plug a net budget gap of £10.8m next year.
Senior councillors said extra government funding had helped ease financial pressures, but cuts were still needed to balance the books.
Scaling back events in the city, reducing fly-tipping clear-ups and increasing council tax by 5% are among the proposals in a pre-budget report.
The Conservative opposition in Coventry said the city was heading for another big rise in council tax.
The party's leader in the city, Gary Ridley, said there was a "black hole" in the council's finances and "it feels like this is a budget built on sand".
"Labour’s broken promises aren't stacking up, and it’s the people of Coventry who will pay the price," he said.
The council has previously warned it was at risk of a section 114 notice, effectively declaring itself bankrupt.
But speaking to the BBC, council leader George Duggins said he believed that would not happen in the coming years.
“I can rule that out,” he said.
Chancellor Rachel Reeves announced an extra £1.3bn for local authorities in the next financial year and the government is reforming council funding.
Next year's financial settlement for councils is due to be confirmed in December.
Duggins said the extra money from government had improved the council’s financial outlook.
“We’re looking at projections in which we hope the savings are less in the years ahead,” he said.
But the council said, given the increasing cost of social care and homelessness, it could not be sure when the service cuts would stop.
Budget report
In a report ahead of its next budget, the council has pencilled in cuts of about £44m over the next three financial years.
It recommends increasing council tax in Coventry by the maximum of 5%.
The council will consult residents on its proposals to cut services by almost £9m in the 2025/26 financial year.
The proposals include:
- Withdrawing grant aid to some voluntary organisations in the adult social care sector
- Cutting some senior management roles
- Scaling back council-funded events in the city
- Lowering the council tax discount from 85% to 80% for those on low incomes
- Charging more for parking at War Memorial Park
- Shrinking the cleaning service in the city centre
The council said reducing the cleaning service “could lead to an increase in overall fly-tipping”.
“Response times for graffiti removal and emergency cleaning would also increase,” the proposals say.
When asked if this would mean more fly-tipping in the city centre, Duggins said the proposal was not something the council wanted to do.
“But we have to be honest with people - and say they’re the kind of proposals we have to share with you,” he said.
He said the council was not prepared to accept more fly-tipping and had increased the maximum fine from £200 to £1,000 earlier this year.
To help drive down costs and communicate with residents, the council is hiring two new directors on salaries up to £130,000.
When asked if this was a wise use of the council’s resources, Duggins said: “I think it is.
“Every organisation needs to look to see where it has weaknesses.
“There’ll be greater focus on performance management and we’ll try to engage with residents on a wider basis.”
The last budget - approved by councillors in February - included a 5% rise in council tax, a reduction in overnight street lighting, and a £40-a-year charge for garden waste collection.
The next budget is expected to be finalised in the coming months before councillors vote on it in February.