Energy costs 'threaten' Coventry City Council jobs and services

Richard Brown said "a series of bigger and bigger sticking plasters" has been applied to local government finances in the last few years

Job losses and cuts to services cannot be ruled out as Coventry City Council copes with rising energy costs, the authority's financial leader says.

Ahead of the government's support package for businesses announced on Wednesday, the council had forecast a £3m increase in energy costs this year.

Energy bills for firms will now be cut by around half their expected level.

But Councillor Richard Brown said "nothing should be off the table" as the authority looks to save money.

Mr Brown, cabinet member for finance, said they were now looking into the detail of what the government has promised.

But of the 700 services the councils runs, he could not guarantee that some non-statutory ones may not be cut.

'Incredible challenges'

"It may well be the case we will have to look hard and fast at some of those," he said.

The "incredible challenges" the Labour-run council faces also means there may be jobs losses and a rise in council tax.

"I think it's fair to say I think, with some of the pressures we're facing, we're going to have to look at everything," he said.

"I think that's the right thing to do, nothing should be off the table.

"However, it is very clear that the last thing we want to do is increase council tax."

Rising inflation, additional levies imposed from central government, increasing demand on children's services and adult social care and a promised funding and business rate review that "seem to get kicked further down the road", all mean extra pressure on the council, he said.

£9.5m overspend

"So what we have is a series of bigger and bigger sticking plasters which has been applied to local government finance," he said.

"You have to say that at some point there's going to be a limit where you're going to run out of plasters or you haven't got one big enough to be able to fix it."

The authority has already reported a £9.5m overspend against this year's budget and council reserves maybe used to plug any gaps.

"Money is set aside for a rainy day well, you could say it's pouring down out there at the moment for ordinary people," he added.

The council is among the bottom 20 in the UK for core funding which has dropped by 50% since 2010, he said.

A recent pay dispute with bin workers also cost the authority £3m.