Coventry residents are expected to face a 5% increase in council tax next year, as confirmed by George Duggins, the leader of Coventry City Council.
Duggins spoke to the BBC about the council’s budget plans, indicating that the city is working on the assumption of a 5% rise, following the government’s decision to keep the cap on local authority tax hikes at this level.
Local councils across the UK are struggling with financial challenges, forcing many to make difficult decisions to balance budgets.
In some cases, like Birmingham, councils have gone bankrupt. Coventry is no exception, with rising costs in services such as social care and temporary accommodation putting pressure on its finances.
Duggins explained that Coventry’s Labour-run council needs to find an additional £10 million in savings this year to ensure the budget remains balanced.
However, the council has benefited from an extra £1.3 billion in funding from the chancellor’s Budget for 2025-26, which Duggins said will improve the financial outlook for the city.
While optimistic about this additional support, Duggins confirmed that the council is planning for a 4.99% rise in council tax, in line with the government’s expectation.
“The government has made it very clear that they are working on the assumption that authorities will raise council tax by 4.99%,” he said.
“We are planning on that basis.”
The government’s decision to maintain the council tax cap at 5% for authorities with social care responsibilities means any rise beyond this limit will trigger a public vote.
This policy, confirmed by the Prime Minister’s spokeswoman, is seen as a necessary measure to prevent excessive tax hikes.
Amid financial constraints, the council’s decision to appoint two new directors with salaries of up to £130,000 each has generated controversy.
The local Conservatives have accused the council of spending taxpayer money on “luxury leadership” at a time when public services are being cut.
However, Duggins defended the appointments, explaining that the new roles were essential for improving efficiency, reducing spending, and better communicating with Coventry residents.
The council plans to announce its budget earlier next year. In the previous budget, Coventry implemented a 5% council tax increase, suspended overnight street lighting, and introduced a charge for garden waste collection.
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