Dudley Council Reports Strongest finances in years as improvement programme delivers results

Dudley Council has today (10 August 2026) reported its strongest financial performance in recent years, marking a major milestone in its ambitious improvement journey.

A report to this week’s Cabinet sets out a strong and much improved financial outturn for 2025/26, delivering an underspend of £14 million, with the council continuing to invest in vital frontline services and strengthening its long-term financial resilience.

The 2025/26 Budget Outturn Report shows the council ended the year in a stronger position than forecast in December reflecting improved financial management, rigorous budget controls, increased organisational discipline and the commitment and hard work of staff.

Members will hear that during the year the council delivered £53.6m of savings, representing 88 per cent of its savings programme, while continuing to support residents through a challenging economic environment.

The remaining savings, which could not be delivered due to ongoing service pressures and the need to ensure service stability for the most vulnerable residents, are expected to be achieved through updated savings plans in 2026/27.

Councillor Steve Clark, Cabinet Member for Resources, said:

"This is a significant milestone in Dudley Council's improvement journey and demonstrates the real progress we have made in restoring financial stability and strengthening our resilience.

"This result has not happened by accident. It reflects the dedication of our staff, the determination of our senior leadership team and the willingness of elected members to make difficult but necessary decisions to put the council on a more sustainable footing.

"Over the last two years we have taken action to improve financial management, challenge spending, deliver major savings programmes and strengthen accountability across the organisation. The outturn shows those actions are delivering results."

The council has used its improved financial position to further strengthen reserves to £64.2m, improving its financial resilience and helping to protect services from future economic uncertainty and increasing demand pressures. However, the council is not complacent and continues to build those reserves further as they remain low compared to other comparable councils.

Councillor Clark added:

"Importantly, this stronger position gives us greater opportunity to invest in the priorities that matter most to local people – supporting vulnerable residents, improving neighbourhoods, strengthening community services and delivering the regeneration ambitions that will help create jobs and growth across the borough.

"While we welcome this progress, we are not complacent. We continue to face significant financial challenges, particularly around Children & Young People Services, special educational needs and disabilities (SEND), and wider demand-led services. 

"Our focus now is to build on this progress, maintain financial discipline and ensure the council remains on a sustainable footing for the future." 

The council’s improved financial position has been achieved without reliance on Exceptional Financial Support from Government, demonstrating the progress made in restoring the council's financial resilience through effective financial management and transformation.  

The Council's Medium-Term Financial Strategy remains focused on rebuilding financial resilience, delivering transformation, improving services and ensuring resources are directed towards the priorities that matter most to Dudley residents.

The 2025/26 Revenue and Capital Outturn and development of the Medium-Term Financial Strategy report will be considered at the next meeting of Cabinet on Thursday August 13.