COVENTRY MESSAGE BOARD

Coventry City Council is to freeze Council Tax bills in April, leaders confirmed today as they unveiled their final budget plans.

The council's Labour leaders had until today planned to increase bills by two per cent.

But they have now decided to take a government grant worth £1.2million instead, as re-imbursement for a third Council Tax freeze in three years.

Deputy council leader George Duggins said detailed technical changes to the government's offer meant a two per cent Council Tax hike would only have raised £900,000.

The government is forcing any council raising Council Tax above two per cent this year to hold a referendum.

Tory opposition leaders in Coventry had called for a Council Tax freeze, pointing to other councils such as Birmingham and Warwickshire which are planning to freeze theirs.

Council Tax bills in Coventry are still expected to go up by a tiny amount in April - because the police and fire services are expected to raise their small portion of overall bills.

The council expects it will mean a 15p-a-week rise for Band D council tax bills.

As expected, the 2013/14 budget from April contains cuts and savings plans of around £28million.

It is part of a forecast massive £140m cuts total expected over four years at Coventry City Council by 2015, amid government "austerity" funding cuts to councils.

Coun Duggins confirmed today the 13,000-strong workforce at the city's largest employer, including schools, will get a one per cent pay rise - the first in four years.

Labour council leaders expect more cuts in services to people in communities, and 800 more job post cuts over the next two years - on top of 800 lost in the previous two years.

Labour’s huge council majority is expected to ensure the party leaders’ budget is passed at a full council meeting next Tuesday (February 26).

Details of which services are to be cut will become clear in the months ahead - as the council conducts a second wave of "fundamental service reviews" aimed at finding £12m savings in 2013/14 alone.

It includes a £3million cut in community services - rising to £15m cuts in two years' time - which includes libraries and adult social care, despite a rising elderly population.

Coun Duggins and unions say councils in Coventry and the West Midlands are getting a raw deal from government funding compared with councils including Prime Minister David Cameron's West Oxfordshire District Council constituency.

He said: "It seems we're not all in it together, after all."

The council's huge cuts and savings requirements are expected to rise to £63m by 2015. Unions fear more outsourcing and service cuts.

The council expects to lose another £3m this year as a result of the continued economic downturn alone - including in lost revenue from car parking and business tax revenue.

As outlined in December's pre-budget report, Labour leaders plan to borrow £50m to invest in job-creation schemes to try to stimulate the local economy, with unemployment remaining relatively high in the West Midlands.

Coventry budget: Council tax frozen but £29 million of cuts on the way

Coventry City Council have agreed to freeze council tax bills as it approved its budget – but warned of another year of pain.

At the annual budget setting meeting, Labour council leaders warned more services to the vulnerable, young and elderly were under threat from government-driven austerity cuts to councils.

The Conservative minority put forward alternative savings which it said would have enabled a modest ‘Living Wage’ pay rise for 2,000 of the worst-paid council staff.

Labour’s huge majority of 43 councillors over 11 Tories pushed their leaders’ budget through a two-hour meeting, which was eventually unanimously approved by both sides.

The budget plans for £29million more savings in 2013/14 from April – with a loss of at least another £15million government funding.

Unions protested on the council house steps against cuts, and fear more privatisation.

Council deputy leader George Duggins, delivering his budget, said governments cuts were transforming the way councils operate. He added: “People will be asked to do more for themselves and rely less on the council.”

He pledged the Labour council would do what it could to protect the most vulnerable.

But the budget outlines £2.5million “early intervention” government grant cuts for children in care, less funding for council-maintained schools, and budget cuts to transport for disabled groups in deprived areas.

It is part of expected £140million city council cuts over the four years up to 2015 - the government’s initial deficit reduction period which has seen funding to councils cut by more than a quarter.

The council expects a further 800 job losses over two years, but will continue to initially seek volunteers for redundancy and early retirement, and continue a vacancy freeze. Unions are set to fight any compulsory redundancies.

As expected, the council froze its portion of council tax bills for a third year, after Labour leaders had in December proposed a two per cent rise.

They eventually decided to take a government grant – estimated at £1.2million – as compensation for not increasing council tax.

Council tax bills are still expected to go up by a tiny amount in April – 15p-a-week rise for Band D homes – because of police and fire services hikes.

Coun Duggins said the 13,000-strong council workforce, including schools staff, will get a one per cent pay rise – the first in four years.

Details of cuts will become clear in the months ahead – after another wave of “fundamental service reviews” seeking £12million savings in 2013/14 alone.

That includes a £3million cut in community services such as libraries and adult social care.

The council predicts losing another £3million this year from the economic downturn – including in lost car parking and business tax revenue.

Fees and charges for council services are expected to rise again to help balance the books.

The council also approved plans to set aside some money this year to borrow £50million to put towards the recently government-awarded City Deal aimed at creating engineering jobs.

The council’s total budget, including for schools and £61million capital spending, is £740million. The revenue budget for jobs and services is £268million.

The budget also includes £14million for school expansions, £6million more for roads and pavements, and £7million for the planned Nuckle Nuneaton to Coventry rail scheme stopping at the Ricoh Arena.

It also protects Council Tax benefit for hard-up residents – while other councils are passing on government cuts.