The town council has said it is committed to supporting local volunteer and community groups, but cannot justify using its cash reserves to fund them.

Local Labour members had called on Kenilworth Town Council to use its reserves to support local initiatives currently helping residents during through the cost of living crisis.

An open letter read at the last full council meeting by Andrew Roadnight, vice-chair of Kenilworth Labour Party, said: "The town council has a large cash reserve and KLP believes that some of this should be used to help Kenilworth's VCS organisations to carry on their crucial work. 

"We call upon Kenilworth Town Council to explore how it can assist these community organisations, including the provision of financial support."

But replying, council leader Cllr James Kennedy said depleting the cash reserves would threaten the "financial viability of the council as a whole" and force members to "vastly" increase the amount of council tax residents had to pay in the future.

"You are correct that the council does have cash reserves," he said.

"These consist of earmarked reserves kept to address anticipated future expenditure and a future reserve. 

"The general reserve is kept at a level as per our reserves policy and in line with good practice for parish and town councils."

Cllr Kennedy pointed to the fact the council had given grants to five community organisations just before Christmas, and also highlighted the funding given to New Hope Counselling and Citizens Advice last year.

He said: "Town councillors played a leadership role in establishing Compassionate Kenilworth which grew out of collective support for residents during the Covid pandemic and is now continuing its work to support residents across the town. 

"As you will be aware the town council has very limited funds which it can apply to support the voluntary sector in the town."

He added: "Kenilworth Town Council will continue to work with community and voluntary organisations to offer whatever we can to help them through this difficult period."