COVENTRY MESSAGE BOARD

The city council is in the process of setting its budget for next year



Taxpayers in Coventry could see council bills rise by five per cent from April 2021.

The city council is proposing a two per cent rise in council tax and an adult social care precept of three per cent.

It means bills for a Band A and B property, which are the most common in Coventry, could rise by up to £65.

There could also be increased fire and police precepts, although this will not be known until February.

The increase has been outlined as part of the council’s pre-budget proposals which has looked to close an initial budget gap of £19m for 2021/21 to £6.2m, although the finance chief in charge said he is "confident" this will be balanced.

Council bosses say this has been done without cutting frontline services, but the three per cent adult social care precept will play a part in bridging the gap, bringing in an expected £4.34m to meet rising costs during the coronavirus pandemic.

The authority is already forecast to overspend by £4.3m on adult social care this year and there is a predicted £1.6m increase in costs next year.

Cabinet member for finance Cllr Richard Brown (pictured) said: “There are rising costs and increasing demand.

“The government had said there’s an additional 2.2 per cent spending power but the majority of that – around three-quarters – is coming from this.

“Unfortunately it’s ordinary people that are going to have to pick up the bill for this.

“But we have a council tax sub-support scheme in place which is one of the most generous in the West Midlands area.”

Around £9.1m of council reserves are being used to help plug the gap. The council has around £144m reserves although some of this is tied up in school and capital resources.

“The reserves are there for a rainy day and it’s chucking it outside there at the moment,” Cllr Brown said.

Pay rise for Coventry councillors pushed through by Labour as Tory pay-freeze plea voted down

A pay rise for councillors in Coventry has been pushed through by Labour despite pleas to freeze pay as a “gesture of solidarity” with residents.

The new Members’ Allowances Scheme for 2020-2024 was agreed at full council and will see a backdated pay rise of 2.75 per cent this year.

Opposition Conservative councillors proposed an amendment to freeze the pay rise for 2020/21 to show solidarity with residents during the pandemic.

Other councillors from other authorities have also rejected pay rises this year due to financial struggles resulting from the Covid-19.

Proposer Cllr Tim Sawdon urged full council on Tuesday to make a “small compromise”.

Speaking at the meeting on December 8, he said: “When many of our constituents have lost their jobs or been furloughed with a 20 per cent pay cut, I think it is incumbent upon us to make a gesture of support.”

However a named vote saw Labour councillors vote down the amendment and push through the increase.

It will see councillors benefit from a 2.75 per cent pay rise on each allowance, with basic allowances rise £387.80 to £14,489.80, while others with added responsibilities will also see additional rises on top.

The pay rise is predicted to cost the council an extra £30,000 overall this year.

Drop 'absurd' 5% council tax increase - Starmer



Local authorities in England will be able to raise council tax by 5% from April, with 3% used to top up adult social care budgets.

Sir Keir said this meant those living in a band D property could see bills rise by an average of £90.

He added that the prime minister should provide extra funding to councils.

But the government says the rise in council tax bills, plus extra money from central government, will ensure a real-terms increase in support for local services.

Sir Keir wrote in the Sunday Telegraph: "It is absurd that during the deepest recession in 300 years, at the very time millions are worried about the future of their jobs and how they will make ends meet, Boris Johnson and [Chancellor] Rishi Sunak are forcing local government to hike up council tax.

"The prime minister said he would do 'whatever is necessary' to support local authorities in providing vital services - he needs to make good on that promise."

Sir Keir urged Mr Johnson to "give families the security they need" by dropping the tax increase.

He said families had been treated as an "afterthought" by the government during the pandemic, adding that Labour would become the "party of the family" under his leadership.

Coventry council tax rise to see most paying an extra £60



A 4.9 per cent rise in council tax in Coventry is expected to be approved.

Residents in a Band A and B property – the most common in Coventry – will fork out around an extra £60 from April, equivalent to around £1.25 a week.

The increase is made up of a 1.9% rise in council tax and an adult social care precept of 3%, which council bosses say will generate £4.34 million to help meet rising social care costs during the coronavirus pandemic.

Changes are set to be passed by councillors at a meeting of the full council on February 23 in conjunction with Coventry City Council's budget for 2021/22, which includes cuts to close an initial £19m black hole.

A pre-budget shortfall of £6m has also been closed, which has been put down to a stronger Local Government Finance Settlement than expected at £8.9m, use of council reserves, and ‘technical savings’.

Budget pressures include a £4m increase in children’s services costs, £2.4m loss of company dividends from shares in the likes of Birmingham Airport and Coombe Abbey, a £1.7m reduction in expected car parking fees and bus lane enforcement, and a £1.6m increase in adult social care costs – an area the authority is already forecast to overspend by £4.3m this year.

Among the savings £1.5m has been shaved off the housing and homelessness budget, and £1m reduced from the budget for expensive exit-costs.

Funding challenges continue in later years, however, with a £17.1m gap predicted for 2022/23 rising to £23.6m the year after.

Council tax hike in Coventry approved



Bills for the average Coventry resident will rise by an extra £60 from April after councillors rubber-stamped a council tax increase.

The proposed 4.9 per cent rise was approved by all but one councillor at a meeting of Coventry’s full council on Tuesday, February 23.

Residents in a Band A and B property – the most common in Coventry – will now pay an extra £60 for the year, equivalent to around £1.25 a week.

An adult social care precept of 3% is included in the rise, which council bosses say will generate £4.3 million to help meet rising social care costs.

Only Independent Cllr Glenn Williams rejected the council tax hike, calling instead for a rise to be frozen and funded by one-off council reserves.

He added: “I recognise this has been a year when councils across the country have had to deal with major financial pressures, but so have our residents.”

Cllr Brown said the one-year local government settlement the authority had been given was a “sticking plaster” which led to future funding gaps – £17.1m for 2022/23 rising to £23.6m the year after.

However the Conservative group argued the authority had been funded by government, citing £56m in grants during Covid-19 and some £160m government funding to capital projects.

A Conservative ‘alternative budget’ proposed more funding for Plas Dol-y-Moch, road safety schemes and potholes; while shaving off money from the likes of Trades Union funding and abolition of deputy cabinet member posts.

A further amendment also proposed £150,000 additional funding for Plas Dol-y-Moch, which is facing a council restructure as a result of £150,000 losses in 2020/21. However both proposals were voted down.

Opposition group leader Cllr Gary Ridley said: “This is about providing a solid alternative to the people of Coventry. We would tackle that vested interest, divert money away from the Trade Unions and member’s allowances and put it onto the front line where it could do more good than it currently does.”