Coventry City Council is set to launch its annual budget consultation.
This year's consultation will have a significant different focus – with no cuts to services proposed and the potential for additional investment for the second year in a row.
For the first time in about 15 years, the Council anticipates being able to meet its legal duty of setting a balanced budget for 2026/27 without requiring significant service reductions, thanks to expected improvements from the Government's Fair Funding reform.
The reform, which redistributes local government funding on a needs basis, is expected to benefit Coventry – a growing city that has been disadvantaged under the previous system.
The Council currently receives £46 per person less than the national average in Core Spending Power, equating to around £17 million.
However, the Council is still awaiting the Government's Provisional Local Government Finance Settlement, expected in late December, which will confirm the exact funding position.
The Pre-Budget Report, which will go before Cabinet on 16 December, outlines potential themes for investment based on public engagement and council performance data. These include:
· Keeping people safe – tackling crime, improving cleanliness and city centre improvements
· Anti-social behaviour – including fly tipping
· Local environments – particularly in deprived neighbourhoods
· Protecting vulnerable people – tackling child poverty
· Good jobs, investment and prosperity – addressing youth unemployment and education achievement
· Helping people to manage – support with bills and energy costs
· Roads and pavements – improving condition and safety
Councillor Richard Brown, Cabinet Member for Strategic Finance and Resources, said: “This cautiously positive picture has been made possible thanks to the financial prudence exercised by the Council as our budgets were cut, austerity and the ongoing cost of living crisis.
“We've had to make very difficult decisions, saving £66 million over the last five years alone, to meet our statutory duty of agreeing a balanced budget.
“While we're still awaiting confirmation of our exact funding settlement. Early indications suggest we may finally be able to invest modestly in improving services rather than making further cuts. It means we should be able to propose additional investment in services rather than any further reductions.
“However, we remain realistic. Significant pressures continue in areas like children's and adult social care, inflation remains stubbornly above target, and we must remain financially disciplined.
“But if funding reform delivers as expected, we'll be consulting on potential investment themes that reflect what matters most to residents.”
The Pre-Budget Report also outlines a substantial capital programme of £455 million over five years, including major investments in transport infrastructure, city centre regeneration, school places, and the West Midlands Investment Zone.
Despite the improved outlook for 2026/27, the report acknowledges that challenges remain. Costs continue to rise in children's and adult social care due to increased demand, complexity of needs, and National Living Wage increases. Inflation is running at 3.6%, well above the Bank of England's 2% target.
Subject to Cabinet approval on 16 December, a six-week public consultation on proposals will run from 17 December 2025, with the final budget proposals going to Full Council in February 2026.