Godiva Festival a strain on Coventry council's budget
The local authority are set to overspend by £1 million in culture alone this year.
It's been revealed that Godiva Festival is one of two things causing a strain on Coventry council's budget.
The local authority is predicted to overspend by £1 million on culture alone this year – partly because of a popular festival’s shortfall.
The other strain is holding costs for the IKEA building which is set to be transformed into a collections centre and cultural hub.
It comes as the council is set to go over its overall budget by £7 million this year with officials warning “urgent action” is needed.
Cuts to Godiva festival’s £300k council subsidy were signed off by politicians last year. The change, due to be rolled out this year meant the council would need to seek other ways to cover the costs.
Higher ticket prices, more sponsorship and outside funding were put forward as ways the family event could bring in more income. Today, the council revealed the dates the music festival will return this summer.
However, it has been announced that Godiva Festival last year saw fewer ticket sales, clashed with the Euros, hit by bad weather and a drop in commercial income.
Deputy leader Cllr Abdul Salam Khan stressed the event’s “economic benefits” for the city and said they are “committed” to keeping prices “as low as possible.” Ticket prices and the line-up have not yet been announced.
The news also comes after work to repurpose the old IKEA building abruptly stopped when the contractor doing the work collapsed. It hit the stumbling block in September and there have been no further updates on progress.
Last year, the council overspent by £900k on the project to transform the seven-storey former furniture store. At the time a spokesperson blamed delays due to Covid, inflation and extra operating costs.
Officials say this year’s budget woes are partly caused by a delay in rolling out last year’s huge savings. Outside factors are also playing a role, they claim, such as historic inflation, rising demand for services and market conditions.
But they also reveal the huge overspend comes despite one-off actions to try and reduce it. The report states “further urgent action is required” to tackle the pressures and stop next year’s position reaching “unmanageable levels.”
More cuts affecting public services are also likely to be signed off later this month. The moves could include losing the free parking at War Memorial Park, slashing street cleaning budgets by 10% and cutting funding to a charity’s service for people with disabilities.
But the final budget has not yet been revealed. Councillors from the ruling Labour group will be asked to sign off the latest spending forecast at a Cabinet meeting next week.