Can Costa help solve Wolverhampton City Council's cash woes?

Wolverhampton City Council needs to save £123 million over the next five years and faces the prospect of becoming insolvent within a year without drastic cuts.

But bosses believe they may have come up with the solution to their woes – selling Costa coffee.

Do not expect to see councillors wearing overalls and pouring hot water through beans though.

Instead, the cash-strapped local authority has agreed to spend £15,000 revamping its snack bar in the Civic Centre with the chain's branding in an effort to generate cash.

As Councillor John Reynolds says, every little helps.

Councillor Reynolds, cabinet member for city services, said: "Costa is a hugely successful and popular brand and I am delighted that the council will be selling their coffee.

"The variety of what we are able to offer customers will improve with, for example, speciality coffees and iced drinks.

"We hope to attract more people to use the facility, which will of course raise revenue at a time when every penny counts."

The council says it expects to see a return on its investment within 13 months of the new-look outlet opening in the spring.

But opposition Tories have hit out against the scheme, calling it 'another mad cap idea'.

Councillor Neville Patten, shadow opposition leader of the council, said: "In normal circumstances I would probably say it is a good idea. A lot of our staff go over to Costa to buy their coffee. Bring the mountain into the council instead.

"But in the present economic climate this seems like another mad cap idea for saving money.

"To me it seems, why don't they just leave things as they are and then when things get better they can look at it then?

"It's a scheme which ought to be put on hold until we are financially better off.

"This scheme comes under their title of investing to save, but how can you invest to save when it's going to take 12 months to get it back, if you get it back?"

The council will still run and own the snack bar and the staff will still be council employees, although they will be trained by the coffee company.

The decision was approved at a meeting on Tuesday.

It comes as city council faces the most testing period in its existence as Government cuts take their toll.

Councillors have warned that landmarks including Central Baths and Bantock House may have to close if they cannot be run for less money.

The council has also said it will be insolvent in a year unless cuts are made.

Bosses say closing the historic museum could save £197,000, but they say they remain determined to keep it open.

That is one of a list of dozens of proposals drawn up by the council as potential money-saving schemes currently being consulted on in an effort to tackle the authority's potentially crippling debts.