Cov Council Going Bankrupt? (1 Viewer)
- Thread starter Nick
- Start date
David O'Day
Well-Known Member
It's because they don't have enough money to supply essential services due to reduced central government funding and the inability to raise council tax to a level needed to cover the shortfall
Pretty easy to explain
Nick
Administrator
Yet they were planning a bailout of a failed Rugby team who had gone bust owing the Council hundreds of thousands.
Grendel
Well-Known Member
Nothing to do with the £50 million potential equal claim payments then?
JulianDarbyFTW
Well-Known Member
I think the BBC reported part of the reason as "increasing inflation and social care costs". But surely that applies to all councils in one way, shape, or form.
I did see some stats that showed a ~10% reduction in the population of Coventry since Covid, which if true (I have doubts) suggests a decrease in council income too.
I did see some stats that showed a ~10% reduction in the population of Coventry since Covid, which if true (I have doubts) suggests a decrease in council income too.
skybluetony176
Well-Known Member
There’s literally dozens of councils facing the same issue. Regardless of which political parties run that council. And in the majority of cases it’s down to cuts from central government.
Grendel
Well-Known Member
Of course nothing to do with this...
‘It’s going to cost billions’: UK councils face huge bills over equal pay claims
GMB union is supporting 3,000 claims in Birmingham – and is gathering evidence from 20 other councils
jimmyhillsfanclub
Well-Known Member
A lot of councils have also taken on huge levels of debt in order to gamble on the markets, commercial property investments etc.
.......apparently with not much thought into what happened when the cost of that debt increased significantly (as was inevitable)
Phil & Kirstie have a lot to answer for.
.......apparently with not much thought into what happened when the cost of that debt increased significantly (as was inevitable)
Phil & Kirstie have a lot to answer for.
Sky Blue Pete
Well-Known Member
Reduce their funding by £1bn and then increase the adult social care requirement by withdrawing any safety net at a time of record cost of living rises
All councils will find themselves in this position
Can you imagine the alternative of taking hundreds of thousands pounds out of adult social care locally!
David O'Day
Well-Known Member
Not massively no, CCC main issues are the lack of central funding and the inability to tax the shortfall
You can believe what you want but that is the words of a senior officer.
Thanks for playing though
David O'Day
Well-Known Member
pretty much this, people need to understand that no matter how low the funding levels get the council still needs to provide a certain level of service even if they can't really afford this.
David O'Day
Well-Known Member
If anyone else wants to go on about "equal claims" then remember this. If central government properly funded councils of all stripes there wouldn't be these issues and the equal claims costs would be easily managed.
Blaming equal claims for a council going bust is like someone saying they bankrupt because they brought a loaf of bread to eat. They only become issues because something else has gone horribly wrong before hand.
Blaming equal claims for a council going bust is like someone saying they bankrupt because they brought a loaf of bread to eat. They only become issues because something else has gone horribly wrong before hand.
NorthernWisdom
Well-Known Member
If they were the only ones there might be a point, but given local authorities have been encouraged to make risky investments to fund services, and many are on the brink (including some that may come as a surprise if they fall) then the answer is clearly that central government have squeezed funding for years, attempted to make a small state by stealth and don't care about the crash in support for the vulnerable as a result.
Sky Blue Pete
Well-Known Member
We know that to be true
How DOESN'T a council go bankrupt.
eastwoodsdustman
Well-Known Member
Maybe they should sell off some of their art collection to offset some of their losses.
Nobody gets to see it anyhow.
Nobody gets to see it anyhow.
Nearly all Coventry City Council-owned artwork in storage
More works owned by Coventry's council are stored compared to before the UK City of Culture year.
www.bbc.co.uk
NorthernWisdom
Well-Known Member
Cultural vandalism, that would beMaybe they should sell off some of their art collection to offset some of their losses.
Nobody gets to see it anyhow.
Nearly all Coventry City Council-owned artwork in storage
More works owned by Coventry's council are stored compared to before the UK City of Culture year.www.bbc.co.uk
NorthernWisdom
Well-Known Member
Anyway, £30mil funding gap for CCC, £18mil fu9nding gap for WCC. They split Northants after its bankruptcy, and the North has a gap of £17mil, the West £10mil. Leicestershire is a £44mil gap.
In short, it's a shitshow, and central government don't care.
In short, it's a shitshow, and central government don't care.
Peter Billing Eyes
Well-Known Member
There hasn’t been a 10% reduction in the population, it was found that the way they had been calculating the figures had been skewed for a number of years and over-estimated. At one point it was suggested the numbers in Coventry were approaching 380,000, when in fact they were 345,000 people in the city. I’m not sure what effect that would have on funding, but it is wrong to suggest the population has fallen.
shmmeee
Well-Known Member
It’s not a person. It’s a government entity. It runs out of money when central government says it does.
shmmeee
Well-Known Member
Just more incompetence. Police, Justice, Health, Education, transport, immigration, tax collection. Is there an area of government that isn’t on its knees?
fernandopartridge
Well-Known Member
I really hate discourse in this country. Every penny a council spends is spent into the private sector (either through purchasing labour, goods and services from people or businesses), why is it that people believe cutting that by a significant % is a sensible idea?
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Just tongue in cheek pal.
Nick
Administrator
Coventry City Council's Coombe Abbey Hotel losing millions
Coventry City Council's bleak forecast follows a warning last month that it could be close to bankruptcy.
www.bbc.co.uk
Astute business
Senior Vick from Alicante
Well-Known Member
Cov services will be cut next financial year due to the fact that they are over spending on social services as a direct consequence of the Daniel Pelka murder and enquiry. They are overtly risk adverse due to this and spend an excessive proportion of budget in this area.
Flying Fokker
Well-Known Member
It’s not that straightforward. Social services, such as older peoples services and also othe day services have spare capacity but are managed in such a way as they are reluctant to take on new service users when there are external service providers. They also work on the basis that people take a direct payment rather than council services. Some strange projects in the past few years. Embraced by some, but none the less, poor use of public funds.
Como
Well-Known Member
Coventry council used Airbnbs to house ‘vulnerable’ teenage boy accused of rape
A judge has accused the local authority of a ‘lackadaisical’ attitude to the 16-year-old’s care after regulated providers refused to give him accommodation
Coventry council used Airbnbs to house ‘vulnerable’ teenage boy accused of rape
Judge accuses local authority of a ‘lackadaisical’ attitude to the 16-year-old’s care after regulated providers refused to give him a place
You can imagine how much this is costing and a classic example of designing a system that could not possibly handle such a situation and then blaming the people stuck with the issue.
OffenhamSkyBlue
Well-Known Member
fernandopartridge
Well-Known Member
To be fair to the council the best element of it was delivered and that's the deck over the ring road. It was always probably a bit too ambitious.
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fernandopartridge
Well-Known Member
The private sector isn't interested, the intention was never for the council to fund it all
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