Coventry City Council faces a £9.5m overspend due to rising inflation and the doubling of energy costs.
A report by Cllr Robert Brown, cabinet member for strategic finance and resources, outlined the council’s finances for 2022/23 and predicted additional inflationary costs of nearly £8m.
He said: “We are dealing with a very difficult set of circumstances currently and face a real challenge to balance our budget this year.
“Just like residents, councils across the country are not immune to the national financial pressures and face the same energy prices and record inflation levels that every household is having to deal with.”
The report highlighted a £4m overspend in children’s services due to increased numbers and higher costs of placements. It also outlined that the strike by the authority’s HGV drivers has cost the council an additional £4m.
“No one should be in any doubt that this is the most serious financial position that we have faced for some time, and we should anticipate some massive challenges over the next couple of years when we set future budgets,” Brown added.
The report outlined steps to mitigate the cost pressures, which included managers being instructed to identify areas where they can manage expenditure levels.
The finance report will be presented to Coventry City Council’s cabinet meeting on 30 August.
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