The council's outturn report for the financial year 2025-26, shows the scale of the turnaround: an overspend of £1.6m had been forecast as recently as January this year, but disciplined budget management across the year delivered a £3.2m surplus instead.

Improvements included sharper income collection in highways and car parking, and falling numbers of families needing emergency housing support.

The Council also delivered £154.3m of capital investment during the year – covering schemes from Coventry Very Light Rail to the City Centre Cultural Gateway and a major schools building programme – without taking out a single pound of new long-term borrowing.

Net debt fell over the year, and 61% of the £154.3m capital programme was funded by external grants rather than council cash.

Councillor Richard Brown, Coventry's Cabinet Member for Finance and Strategic Resources, said favourable financial position forecast was also due to government listening to the fact the city had been under-funded for more than a decade.

He said: “Our campaigning for a fairer funding deal has been heard but these figures reflect the financial prudence and responsibility we have shown.

“This result reflects years of careful, disciplined financial management by this council, often in genuinely difficult circumstances.

“To deliver an underspend during a year when demand for services like adult social care and homelessness support has risen so sharply is testament to the grip our officers and members have kept on the council's finances.

“We're not complacent. The pressures behind this rise in demand aren't going away, and they're being felt by councils right across the country. But this result shows that with discipline and careful planning, we can continue to manage them responsibly while still investing in the city's future.”

The full report detailing the Council’s Revenue and Capital Outturn for 2025-26 will be heard by Cabinet on Tuesday 7 July.