Coventry Council Tax to rise for first time in four years

Council tax is set to rise for the first time in four years after bosses drew up proposals for a two per cent increase.

Finance chiefs plan to turn down a government grant to freeze the annual bill and instead push the tax up by 31p per week in city households.

The move was drawn up as part of plans to beef up council coffers in the wake of more government cuts.

Bosses face a budget gap of more than £2m next year and by 2016 that deficit could rocket to £50m unless drastic action is taken.

Around 1,000 council staff have already taken up voluntary redundancy and more job losses will be made, although finance chief Damian Gannon said it was too early to put a figure on how many or when the axe would fall.

He claimed the council tax increase would prove beneficial to the council and vulnerable familes classed would be exempt.

"Each and every year we take a pragmatic decision about whether we take the council tax freeze grant from government or whether we increase council tax," he told the Observer.

"This year it looks as if it will be beneficial for us to increase council tax - subject to the way government calculate the freeze grant.

"With the horrendous cuts we're faced with, we do need to start taking these decisions to grow the council tax base for the future."

Other key decisions include scrapping proposed £4m savings in children's services in response to the rising number of children under council care. More than 600 children are now in care, a figure that has risen in recent months after the Daniel Pelka tragedy.

Coun Gannon added the rise was a national trend and the extra resources would tackle what were 'hopefully temporary' pressures.

He also claimed positive steps made next year included work starting on the Friargate business district, the Nuckle project - which will see a train station built at the Ricoh - and investment in city firms under a £50m project dubbed the Coventry Investment Fund.

He added the latter project would help the council be "masters of our own destiny", less reliant on government grants and more able to protect key services.

"This year it looks as if it will be beneficial for us to increase council tax ..."

Yes, beneficial to you mate, not the people you serve!