Dudley Council cuts: Ruling Labour group defeated on 4.99pc tax rise hike

However Dudley borough residents will still see a council tax rise of 3.99 per cent from April.

This came as part of an agreement reached following a full council meeting which lasted nearly five hours last night.

The budget put forward included a council tax increase of 4.99 per cent, which is the highest that can be implemented by councillors without requiring a public referendum.

The Labour-controlled authority argued that the increase is needed to save £26 million over the next three years.

Presenting the budget, cabinet member for finance, Councillor David Sparks, said: "It is incumbent on any member moving an amendment for any lesser amount to specify what they would cut."

Tory finance spokesman, councillor Steve Clark, then put forward an amendment suggesting the alternative council tax rise of 3.99 per cent, and for all out elections to be held every four years, with the first taking place in May 2018.

"Labour have blamed Tory cuts for their own mismanagement," said Councillor Clark. "You've got to stop this smoke and mirror politics.

"Dudley's Labour-controlled authority has spent £1.3 million on consulting this year alone.

"Six million over the last four years, doing the job we are already paying our officers for."

In support, Conservative group leader Councillor Patrick Harley said by moving to the all out election system, selecting all council members every four years instead of a third of members at a time, it would save the council around £250,000 every non-election year.

He added: "If the public want change, in all out elections, they get change."

In response, leader of the council, Labour's Pete Lowe, described it as a 'ridiculous amendment', and added: "Their own party, when they are in positions of power, are recommending 4.99 per cent."

UKIP's Bill Etheridge said: "I don't believe we have gone far enough with reform and change to justify the kind of tax increases that are on the table here."

Initially these proposals were lost as an amendment by 42 votes against, and 29 in favour.

However Labour's budget was then rejected in a close vote with 36 against and 35 in favour, forcing the councillors to continue their debate until they reached an agreement over the council tax rate, which by law must be decided upon by March 11.

The council chamber descended into shouting and there were repeated adjournments, after Councillor Clark presented the Conservative's proposals again.

This time they were presented as a motion with a UKIP amendment requesting that the authority sources a private company to deliver savings of five per cent from procurement over the next three years, paid on results.

UKIP group leader, Councillor Paul Brothwood, said: "If the chief executive and corporate board cannot find savings then they should be relieved of their duties."

Labour councillors accused the opposition parties of 'hypocrisy' and a 'dodgy deal'.

"Vote UKIP get Tory, vote Tory get UKIP," said Councillor Lowe.

In the end the Conservative motion which includes all out elections every four years, with the added UKIP amendment, was approved, again by a narrow margin of 36 votes in favour and 35 against.