Hippodrome to be saved as UKIP pave way for Labour-led Dudley Council

The landmark site on Castle Hill could be leased to campaign group The Friends of Dudley Hippodrome for the next 12 months following an agreement that will see UKIP councillors abstain from tonight's leadership vote, paving the way for Labour to run a minority administration with 35 of the authority's 72 seats.

It will also see a review of the decision to close Dudley Museum and Art Gallery, which was announced last October by the Labour-run authority as part of a £20 million three-year savings plan.

UKIP Councillor Bill Etheridge, who represents Sedgley, said: "We are committed to remaining independent and we only agreed to abstain from tonight's vote providing certain demands were met by the Labour group.

"The fact that the Hippodrome could be saved is obviously a big one for the town. The Friends group will now have the opportunity to take over for a year, enabling them to put plans in place to take the site forward."

Labour leader Councillor Pete Lowe, who is expected to remain as council leader, said: "We have always been committed to finding a viable group to take over the running of the Hippodrome.

"Talks have taken place with the Friends group on a monthly basis. Hopefully we can put forward a solution that is satisfactory to everyone."

Gordon Downing, chairman of the Friends group, said: "This is an extremely exciting time for us. It is something we have discussed as a group.

"The next stage is that we need to building signed over to us so we can move things forward. Hopefully we can pull it off in the first year and provide a fantastic venue for the town going into the future."

The UKIP/Labour pact could also see a stand alone company formed by the council to carry out all building work in the borough.

UKIP has also requested a public consultation on the West Midlands Combined Authority.

Meanwhile Labour has agreed to three of the council's five scrutiny panels to be chaired by Tory councillors, with one position given to UKIP.

Mr Lowe added: "We have got the other parties to accept that with 35 seats we have the democratic mandate to continue as a minority administration."

A UKIP/Conservative alliance had been mooted over the past week, although a proposed deal is said to have fallen by the wayside due to Tory opposition in the north of the borough.

"But it appears that when it came down to it they got cold feet. I'm disappointed they can't rise to the challenge and it shows the naivety of a fledgling party."