Council tax rise approved

Dudley Council agreed a 2.99 per cent increase in the basic rate of council tax at a meeting this evening (MON).

Elected members also agreed a 2 per cent increase on top which will go directly to service for older and vulnerable people, making 4.99 per cent increase in total.

The rise, from April 1, equates to £1.17 per week for a typical Band B property, or less than a 2-litre bottle of milk.

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

The increase is not contested by either of the main political parties as the council strives to balance the books against the threat of bankruptcy. The council currently has a £5.5million hole in its finances, which is set to rise to £12million by 2026/27. 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, added:

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 rigorous spending controls including a recruitment freeze.

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

Ends