Dudley Council accused of 'sleepwalking off financial cliff edge' as bid to raise taxes four per cent branded 'ridiculous'

The cash-strapped authority unveiled proposals to help slash a black hole in its funding from £50million to just under £21million.

Opposition councillors have criticised the Labour-run council, saying their latest budget plans fail to fix underlying problems.

Council bosses said the authority was facing difficult decisions due to a reduction in government funding and would 'leave no stone unturned' in looking to plug the cash shortfall.

Conservative leader Councillor Patrick Harley said: "We would support one council tax increase this year as we've had five years with no increase.

"But I think it's ridiculous to propose to do this for three years in a row at this stage.

"The council needs to be imaginative and innovative to deal with its financial problems.

"This council has refused to deal with the reality that local government needs to change the way it does business.

"If you just choose to raise council tax it doesn't deal with the root cause of the problem."

On Monday the council revealed plans to increase its share of council tax by 1.99 per cent and take up a Government offer to increase it by a further two per cent for adult social care.

This works out to be an extra 77p per week or £40.04p per year for people living in Band C properties.

Bullish council chiefs said the borough's residents would continue to pay the lowest council tax rates in the region despite the rises.

UKIP leader Councillor Paul Brothwood said: "It's a lot of money to ask residents to pay, and the big problem is it hits people on the lowest incomes the most.

"Labour have run us into such a dire state that we have no choice but to reluctantly have this.

"There have been years of mismanagement which have led us to this point.

"The council is in an awful situation financially.

"Raising rates by four per cent for three years is a huge sum for residents and a poor reflection on the council.

"This council hasn't thought about regeneration for years so it waits for the poor residents to foot the bill."

Council leader Pete Lowe said: "We have worked relentlessly and left no stone unturned in a bid to plug the funding gap we have faced due to government funding.

"Our transformation project to change the way the council delivers services will now pick up further pace as we continue to respond to the toughest financial position the council has ever experienced."