Council takes “first steps” towards balancing the books
Millions of pounds of savings have been found to more than halve Dudley Council’s budget shortfall for next year, councillors will be told.
The local authority was a facing a shortfall of £35 million for 2025/26 to set a balanced budget.
But the council’s ruling cabinet will be told at a meeting next week that due to efficiency savings and other cost reductions, officers believe the shortfall can be reduced down to just £12.5 million.
Further savings proposals are now being developed with a view to eliminating the shortfall completely.
Consistent with the vast majority of councils, the budget forecasts assume a council tax increase up to the referendum limit which is currently set at 4.99 per cent.
Councillor Patrick Harley, leader of the council, said:
“This is better news and the first steps towards balancing the books for the coming financial year.
“It is a clear indication our new operating model, developed in part using feedback from external auditors, is robust as we move ever further away from the risk of a section 114.
“We will now be moving forward to develop a second phase of savings proposals, with the aim of eliminating the budget shortfall entirely.
“It is likely in this second phase that tough decisions will need to be made, but I am pleased to report at this stage that we are not looking to close any leisure facilities or town halls next year.”
The cabinet will discuss the report on December 11 at 6pm.