Coventry Council claim £1m loan to City of Culture Trust is worth the investment
The loan will help the Trust address short term cash flow issues, as it enters the legacy phase.
Coventry's City of Culture Trust has asked the local council for a £1 million loan of public money towards its legacy projects.
A report to the authority said the trust's finances had been hit by the Covid-19 pandemic, the cost-of-living crisis, and the timing of some payments it was due.
Without support, they claim there is a potential risk of the legacy programme being curtailed ahead of schedule - following the end of the UK City of Culture year.
The Council’s Cabinet Member for Finance, Cllr Richard Brown, is considering the request.
He said: “Coventry’s year as UK City of Culture was impacted by the COVID pandemic. It makes sense to provide a loan to help the Trust through this period. This will help the Trust complete its programme, meet its performance targets and avoid any financial penalties.
“The Trust and the Council are absolutely committed to achievement of the long-term legacy impacts anticipated from the UK City of Culture year and this temporary cash-flow support is essential to make sure that this happens.”
Cllr Brown added: “As a result of our Year as City of Culture there have been many capital building schemes completed including the city centre public realm and over £170million in investment has been secured into the city as a result of the title.”
The Trust’s budget assumes that the sum will be repaid in full, with a commercial interest rate to be levied.