The overspend is mostly a result of the financial implication of the COVID-19 pandemic.
Pictured: One Friargate, Coventry City Council’s primary office building.
Coventry City Council are projecting a £6.7 million overspend by the end of the financial year based on its expenditure and income between April and June 2020.
A new report expected next week will highlight the extraordinary impact of the COVID-19 outbreak since March, which the Council expects to cost taxpayers over £26 million by the end of the year.
The total overspend would have been £28.2 million but a number of Government grants will contribute towards the cost, reducing the forecasted overspend to £6.7 million.
The Council also expects further funding to compensate it for loss of income as a direct result of COVID-19, which will improve the overall position faced by city.
Despite the Government contributing towards the cost, Cllr John Mutton from Coventry City Council criticised them over “further delays in the announcement on the Spending Review for next year”, which he said will make it “impossible for any council, not just Coventry, to plan and set budgets properly.”
“However, as a Council, we continue to be committed [to] delivering the best possible services to the public and our communities as we all move forward”, he added.
Aside from the financial implication of COVID-19, the report also highlights overspends in excess of £1 million in each of the Children and Young People, Streetscene and Regulatory, and the Highways and Transportation areas.
Early forecasts also indicate that the Council’s capital spending is projected to be £271.8 million, which includes the cost of major schemes such as the A46 Link Road, Coventry Station Masterplan, Whitley South infrastructure and the National Battery Plant.
This level of expenditure, if achieved, would exceed the previous financial year, representing the largest investment in facilities and infrastructure in Coventry for many years.