Coventry City Council invests £128m in city projects but says ‘challenging’

Coventry City Council has unveiled its budget for the past year and said more than £128m has been invested in city projects. Money has been spent on transport infrastructure, green initiatives and housing.

Councillors at the Labour-led authority said they had a ‘remarkable turnaround’ from the predicted £7m overspend. Savings were made by using ‘strong financial management and disciplined budget control,’ they said. However the opposition Conservative group claimed the budget ‘did not reflect reality’.

But leaders acknowledged balancing their financial obligations had been ‘challenging.’ Approximately £128.8m has been invested in the city over the past year, with 65 per cent funded through grants from bodies such as the Department for Transport.

Securing funding this way has ‘reduced the burden’ on city taxpayers, Coventry City Council said yesterday (July 1). Key investments included £22m in transport and highways infrastructure, including the 220-metre Coventry Very Light Rail (CVLR) test track on Greyfriars Road and Queen Victoria Road.

Around £18.3m was invested in city schools, and £16.5m was spent on climate change initiatives, including green homes and decarbonisation projects. More than £6m was used to support registered housing providers to tackle housing issues across Coventry.

Councillor Richard Brown, Cabinet Member for Strategic Finance and Resources, said: “Despite the challenging environment facing all local authorities and through the efforts of finance colleagues, we have ended the year with a balanced budget.”

Commercial investments were said to have delivered ‘exceptional’ returns, with the Asset Management Revenue Account (AMRA) generating a surplus exceeding £10m. Strong dividend performance from Birmingham Airport and the Coventry and Solihull Waste Disposal Company also contributed.

But Conservative Cllr Peter Male, Shadow Cabinet Member for Strategic Finance and Resources, said: “Last year, they told us council tax had to rise, and services had to be cut. Yet here we are again, another year, another underspend.

“Coventry City Council should not take a penny more than it needs, in my view. Yet this underspend represents a one per cent tax rise, which shows there is room to reduce tax.

“Even worse, many of the planned savings have not been delivered, leaving a black hole in the budget and storing up pain for the future. What is the point of a budget if it does not reflect reality?”

Coventry City Council said this year it will be focusing on creating infrastructure for the West Midlands Investment Zone and progressing the £450m regeneration project City Centre South. Sustainable transport improvements will also be a primary focus, with CVLR being expanded to Coventry Railway Station and Coventry University.