Coventry Council overspend revealed but budget cuts unlikely in future
Government funding boost reduces need for cuts in Coventry's upcoming budgets
Coventry City Council ended September £3.3m over budget but anticipates a more stable financial outlook for the coming years, according to Cllr Richard Brown, the cabinet member for strategic finance and resources.
While presenting reports during a cabinet meeting on Tuesday, Cllr Brown shared updates on public consultation for the next year’s budget and the council’s financial position for the second half of the current year. He explained that additional Government funding would mean no cost-cutting measures to balance the books in 2026/27.
“We have lobbied really hard over the last two to three years to get fairer funding for Coventry, and the indications are that we might have just achieved that,” Cllr Brown said.
He noted that while Coventry City Council has saved £66m over the past five years, a projected financial headroom has eased the pressure for the coming years. A capital programme allocated over £450m for the next five years, including £12.3m for the Coventry Very Light Rail development and around £40m for city centre regeneration.
Despite optimistic projections for the long term, Cllr Brown highlighted challenges for the current financial year, with the council seeing a £3.3m overspend up to September.
“Although 26/27 may offer more hope, we still have this year’s challenge to meet. While it is good to look at the future with more hope, we cannot take our eye off the ball,” he said.
Comparing the financial situation to last year’s £10.2m overspend at the same time, Cllr Brown called the improvement significant but reinforced the need for prudence.
“The message is we have to keep the controls in place and we must continue to be prudent. That is why we are not one of the 30 councils this year that have had to take action to avoid issuing section 114 notices (bankruptcy),” he said.