Dudley councillors 'not taking threat of perilous finances seriously' says its ow n auditors

An interim report from consultants Grant Thornton on the council’s finances in the last financial year found just 64 percent of its planned savings in 2023/24 were achieved.

Auditors also criticised councillors for being unwilling to heed officers’ advice on spending, highlighting a decision to go ahead with building a new campus for Pens Meadow special school.

The report said: “There are concerns about the council’s ability to recognise the level of savings necessary to set a balanced budget for 2025/26.

“In 2023/24 there was evidence members were not seriously considering the recommendations of officers regarding the financial position.

“The decision-making around Pens Meadow school serves as an example of members going against the advice of the section 151 officers and the interests of the organisation’s financial viability.”

The decision to override spending controls and go ahead with redevelopment of the rundown Pens Meadow campus was taken by the council’s cabinet in January despite a report from the council’s director of finance, also referred to as the section 151 officer, which urged the scheme to be put on hold until ‘finances are secure’.

Dudley’s leader, Councillor Patrick Harley, stands by the decision to press on with Pens Meadow, saying it was the right thing to do morally and financially.

Councillor Harley said: “We deserve credit not criticism, if we don’t update it would be completely unacceptable to send another generation to that school.

“It will cost us £30,000 per child at Pens Meadow for a year, in the private sector the cost is £60,000 to £90,000 per child, the school will pay for itself.”

The auditors’ interim report was presented to the council’s Audit and Standards Committee on September 30 where Labour’s finance spokesman, Councillor Shaukat Ali, launched a blistering attack.

He said: “This is a damning audit report, in my 25 years coming here this must be one of the worst.

“All we have heard about is weaknesses, this has been racking up over the years, I think what this report sums up is failure.”

The interim report says the council is aiming for savings of £15.6m in the current financial year after delivering £5m last year against a target figure of £7.8m.

Auditors said: “The level of savings therefore appears to be ambitious within the context of Dudley Council.”

Councillor Harley is more optimistic, he said: “You have to take this report in context, it is 12 months out of date.

“In the current financial year council departments are achieving 100 percent of projected savings, the only exception is adult social care and that is the fault of the NHS.

“We are in dispute with the Integrated Care Board, we believe they owe us an extraordinary amount of money and we are currently in negotiations to recover that.

“I don’t think it is as gloomy as it is projected AS they have to err on the side of caution, at the end of the day that is what we pay an auditor to do.”