Council tax hike and £9m cuts for Cov given backing
BUDGET proposals which include increasing council tax by 2.9 per cent and £9.59million worth of cuts have been backed by Coventry City Council’s Cabinet.
Cabinet member for strategic finance and resources Councillor John Mutton outlined the proposals to cabinet on Tuesday with unanimous backing.
It will see bills rise an average of £36 per year, which Cllr Mutton says prevents the equivalent of £3.3m worth of cuts to frontline services.
Proposals for the 2019/20 financial year have been made as the council looks to balance the books amid a £10.2m funding gap.
Cllr Mutton said at cabinet on Tuesday: “When we compare that to other councils up and down the country, some have had to find £46m, £48m and £108 in reductions. That’s because of the excellent work we have done on this and the predicament which was foreseen in 2010 and the steps we have taken.”
However, a £16.7m budget gap is forecast in 2020/21 and a £23.9m gap predicted for the following year. As a result, some services could be at threat of being lost in the future, Cllr Mutton warned.
He added: “We have got a hell of lot of work to do over the next 12 months to present a balanced budget then.
“But for this year I am delighted that with the 2.9 per cent increase in council tax we will have a balanced budget come February.”
Savings will not be made by cutting frontline services, Cllr Mutton insisted. Around £4.85m is being saved in ‘technical savings’ and a further £4.74m in ‘policy options,’ such as restructuring ICT services, reducing funding where there has been an underspend, and removing vacancies for job roles that have not been filled.
Tax hikes will see residents in Band A pay an extra £30 per year - 59 pence a week - while those on smallest incomes will pay nine pence a week extra.
Around £500,000 still needs to be cut to ensure a balanced budget for 2019/20, with Cllr Mutton stating he is confident this will not result in cuts to frontline services.
Proposals will need final approval in February.