Wolverhampton Christmas lights event budget cuts are a 'false economy'

Wolverhampton City Council has announced proposals to spend £25,000 less on annual festive events from next year, as part of wider £98 million savings it needs to make over the next five years.

But the authority was today accused of 'cutting off its nose to spite its face', as the annual events raise funds for the authority.

Every year the events are held in Wednesfield, Bilston and Tettenhall, as well as in the city centre, and traders pay licence fees to the council allowing them set up stalls selling their wares.

Tettenhall councillor Jonathan Yardley says the lights switch-on in his village is growing in popularity, but he warned that trend could be reversed if its budget is slashed, costing the council more money in the long run.

Councillor Yardley said: "Year on year, the number of people attending has increased and increased, and the number of stalls has increased, too.

"The more popular it gets, the more money the council makes from traders.

He added: "It's a fool's cut because the event will shrink in size and they will lose its revenue."

The current budget for Christmas decorations in and around the city is around £100,000 per year, which also covers installation and maintenance.

A 25 per cent reduction would mean a corresponding reduction in the number of decorations installed across the city centre and in Wednesfield, Bilston and Tettenhall.

Council spokeswoman Mel Ryan said the money generated by charging traders for stall licences was 'negligible' and would 'certainly not cover the cost of the lights'.

She added: "The council must make some difficult decisions in the face of unprecedented Government cuts."