Priority 4: Continued financial sustainability of the Council
Ensuring the Council’s financial resources are aligned with key priorities in a way that enables us to maintain a strong and sustainable financial position.
Themes
- an engaged and representative workforce
- delivering a balanced and sustainable budget
- improving digital access and customer service
Executive summary
Against a challenging national backdrop for local government, Coventry delivered a £3.2 million underspend in 2025 to 2026, improving on the previous year's position, and achieved a balanced budget for 2026 to 2027 with a projected surplus in the 2 years that follow.
Savings delivery improved to 84%, up from 73% the previous year, with 65 savings projects delivering in full or above target.
Our workforce continues to grow in diversity, with BAME representation rising to 26.1% and disability disclosure increasing to 8.6%. Staff survey participation rose to 49%, reflecting improved engagement, and the Council retained its Gold Thrive Award for staff health and wellbeing. Agency spend fell by nearly £2.7 million as the workforce stabilised.
Digital access continues to improve, with 96.3% of Coventry households able to access full-fibre internet – well above the England average – and self-service transactions increasing by 4%.
Business and council tax collection rates remain below target and are areas of continued focus.
Overall, however, the Council is managing its resources responsibly, investing in its people, and maintaining the financial platform needed to deliver for residents.
Background by thematic group
An engaged and representative workforce
Workforce development continues to be shaped by national requirements under the Equality Act 2010 and the Public Sector Equality Duty, ensuring councils promote equality, eliminate discrimination and foster inclusive workplaces. National frameworks, including the Local Government Association Equality Framework, support councils to strengthen workforce representation, leadership, organisational culture and inclusive service delivery.
Coventry’s Equality Objectives 2025 to 2028 include a focus on improving staff representation, recruitment and retention across underrepresented groups at Coventry City Council. The Council supports staff wellbeing with continued support for mental health, physical wellbeing and flexible, inclusive working practices that enable colleagues to perform effectively.
Looking ahead, ongoing challenges around recruitment, retention and skills capacity, particularly in high-demand services, will require continued focus on workforce development, inclusion and talent attraction.
Delivering a balanced and sustainable budget
Local government continues to operate in a challenging financial environment, driven by inflation, increasing demand for services, particularly in social care, alongside pressures in homelessness and SEND provision. The Local Government Finance Settlement 2025 to 2026 confirmed approximately £69bn of funding nationally, alongside targeted grants for priority services and a commitment to introduce multi-year settlements from 2026 to 2027, providing greater medium-term certainty.
Coventry’s Budget Report 2025 to 2026 set out a significant financial programme including £961.9m gross expenditure, £171.6m capital programme. While a balanced budget was achieved for 2025 to 2026, the medium-term financial position remains uncertain. Future funding reforms, ongoing service demand and inflationary pressures mean further efficiencies and income generation will be required to ensure continued sustainability.
Improving digital access and customer service
Digital inclusion is a growing national priority, reflected in the Government’s Digital Inclusion Action Plan (2025), which recognises digital exclusion as a barrier to employment, education and access to services.
Coventry City Council is aligned with national policy, which focuses on:
- improving digital skills
- tackling device and data poverty
- making public services more accessible
- supporting locally delivered digital inclusion activity
Coventry’s approach strongly supports the national digital inclusion agenda through the #CovConnects programme, delivering significant measurable impact for residents, communities and the environment.
Digital services were further enhanced in 2025 to 2026, while maintaining alternative access routes.
Performance summary
We monitor our performance for this priority through a set of 22 performance indicators.
- Progress: out of the 22 performance indicators, there is 1 for which we cannot currently report progress compared to the position last year. Out of the remaining 21 indicators – 67% (14) either improved or stayed the same
- Status: there are 4 indicators for which we cannot report their status against target. Out of the remaining 18 indicators for which we can report status against target, 78% (14) are ‘On-Target’