Dudley Council approves council tax rise of almost five per cent

Dudley Council agreed a 2.99 per cent increase in the basic rate of council tax at a meeting on Monday evening.

Elected members also agreed a two per cent increase on top which will go directly to services for older and vulnerable people.

The rise, to come into force from April 1, equates to £1.17 per week for a typical Band B property.

Dudley Council said it has the lowest council tax rates in the Black Country and some of the lowest rates in the country.

The authority is facing a £5.5 million hole in its finances, which is set to rise to £12 million by 2026/27 - while the council’s reserves are set to run dry in two years.

Councillor Patrick Harley, leader of Dudley Council, said: "This increase is essential if we are to get this authority back on an even footing financially.

"We are taking a firmer grip on our own finances and have worked hard to set a sustainable budget whilst protecting essential services."

Councillor Pete Lowe, leader of the opposition, said: "The council’s historically low council tax rates have compounded the current financial pressures.

"The increase is about doing everything in our gift to reverse that issue.

"We have to take politics out of this issue and focus on what everyone came into local government to do – provide services for local people."

Last year, a Local Government Association-led peer review highlighted a number of areas of concern around the council’s financial position which was backed up by an annual independent audit.

The council has responded with a series of measures including setting up an Improvement and Assurance Board (IAB) and implementing spending controls including a recruitment freeze.

The council consulted on its budget proposals earlier this year and attracted more than 1,400 responses.

Dudley Council has also been able to invest more than £40million of extra funding into services for adults and children to tackle the financial pressure on the system.

Adult social care and children’s services at Dudley Council are forecasting a combined £12 million pressure with more vulnerable adults and children needing care and support, often with more complex needs.

An extra £13.3 million was approved for adult social care next year, rising to £21.8 million the following year and up to £29.2 million in year three.

Children’s services was also given the green light for an extra £7.8 million for the next 12 months, increasing to £10.5 million the year after and £12.4 million in the final year.

Councillor Matt Rogers, cabinet member for adult social care, said: "The rising cost of providing services for older people is putting a big strain on council services.

"These are vital services so we have to meet that strain head-on by providing extra money.

"We are taking a firmer grip on our finances to ensure there are adult social care services for people of this borough."

Councillor Ruth Buttery, cabinet member for children’s services, said: "As a child-friendly borough, we are putting children first when looking at funding and the borough’s future.

"Children and families depend on these services and we need to meet that demand with appropriate levels of funding.

"We have already invested in early prevention services to stop people going into crisis and we need to build on the early successes from that investment."