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A charity is warning that the number of homeless people and rough sleepers in Coventry are rising and the problem is only likely to get worse.

Coventry City Council revealed on Monday that large rates of homelessness are helping drive a £2.8million funding gap for the 2018-2019 financial year, along with a rising number of looked-after children.

Benefits reforms and a lack of affordable and sheltered accommodation are said to be the main reasons for the increase.

The council is now looking at ways to plug the gap, which it has promised will not involve any new cuts, ahead of government legislation coming into force in April that will increase local authorities’ responsibilities for homeless people.

Coventry Foodbank is working alongside other groups on the front line.

Project manager Hugh McNeill said: “We have been aware that there is an increase in the number of homeless people in Coventry.

“We work with other groups, including the Coventry Winter Night Shelter, to support homeless people as best we can.

“For us we are very much aware of what’s gong on in the city at this time and are there to support anybody that needs to be helped.”

The Foodbank expects to serve its 100,000th user this week, having seen an upsurge in demand for its emergency food provisions this year.

Mike Fowler, chief executive of Coventry Cyrenians , who support homeless people, was not surprised by the strain being placed on the council’s budget.

He said: “I’m with the council on this one.

“All the statistics show that homelessness affecting single people and families has risen year on year since 2010.

“It had been going down from the turn of the century.

“The problem is definitely a lot worse and it is forecast to get worse as well.”

Mr Fowler cited a lack of affordable housing, a squeeze on wages and living standards and benefits reforms as fuelling the problem.

He believes the Labour-led council faces more burden when it takes on extra responsibilities under the government’s Homelessness Reduction Act, which comes into force in April.

Mr Fowler said: “In terms of the budget the Homelessness Reduction Act puts a lot more obligation on the local authority in terms of what they have to do for people who have not previously been accommodated.

“From a budget perspective I’m not at all surprised at what’s having to happen. There’s simply not enough affordable housing.”

The Conservative group on the council are planning to produce an alternative budget to Labour’s draft financial report, which includes a 4.9 per cent council tax rise, that will go before the full council in February.

Group leader Cllr Gary Ridley complained that details were made public before his members were briefed. He said: “It’s not uncommon for the Conservative Group to be kept in the dark by the Labour administration on the council.

“In this instance our members won’t be briefed on their proposals until Monday night. Over the coming days we’ll be scrutinising these proposals in great depth and we’ll be listening to residents.

“After careful consideration we’ll then bring forward a fully costed, balanced, alternative budget in support of our agenda to make Coventry a happy and prosperous city for all city where people choose to live, work and invest.”