William Eichler 21 August 2023

Service costs ‘unmanageable’, city council warns

Service costs ‘unmanageable’, city council warns  image
Image: Martin Fowler / Shutterstock.com.

Coventry City Council has projected a £12.1m overspend in its budget and warned that service costs are becoming ‘unmanageable’.

The local authority said that the predicted overspend was the result of rising costs and increases in demand for adults and children's social care.

The council spent around 40% of their budget on social care in 2011. In 2023 this figure has increased to almost 70%.

Coventry City Council’s overspend in 2022/23 was £6.7m.

Cllr Richard Brown, cabinet member for Finance said that Coventry City Council, along with other public sector organisations, is heading towards a ‘tipping point’.

‘As well as dealing with greater numbers of vulnerable people who need complex care packages provided by external companies, the cost of all services continues to spiral due to inflation,’ he said.

‘I am planning to write to the Government to request that they step in, otherwise more and more councils will find that they are simply unable to balance their budget.’

Research published today has found that local authorities are facing a £5.2bn deficit by April 2026 even after they have made £2.5bn of planned cuts.

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner