Leader hails budget plans as “giant leap” towards financial stability
The leader of Dudley Council says the authority has taken a “giant leap” towards financial stability after budget plans over the next five years were revealed.
The blueprint will go before the council’s cabinet for approval next week.
It shows the authority is on track to have £48.8 million in its reserves by April next year.
That figure is forecast to grow further to £66.17 million by April 2031, the report reveals.
In addition, the council has earmarked around £18 million to invest in critical frontline services as part of the budget for 2026/27.
It includes a £2 million investment into the creation of two children’s homes which bosses say will save the council around £800,000 a year on expensive placements outside the borough. A further £2 million will be spent in a bid to attract more foster carers.
Around £1 million has been set aside to help vulnerable adults live independently at home following hospital stays, while a further £300,000 will be made available to voluntary sector organisations which support with adult social care.
Council tax could rise by 4.99 per cent to help balance the books – but even with that there is a predicted shortfall of £4.5 million at this stage in the 26/27 budget.
Officers have identified new efficiency savings of £3.5 million to help balance the budget for 2026.
The budget paper reveals the shortfall is expected to rise to more than £35 million by the end of 2031.
Councillor Patrick Harley, leader of the council, said:
“I think if you look at where we were just a couple of years ago - facing the very real threat of a section 114 and the running of our finances being taken away from us – then this shows incredible progress.
“Of course we are not out of the woods yet, and there remains much work to do. The reason we are here is a lot of hard work, but we cannot afford to be complacent now.
“There is no doubt however that this represents a giant leap towards financial stability, and shows we are moving very much in the right direction.”
Councillor Steve Clark, cabinet member for resources, said:
“This budget really shows that we’re starting to turn the tide and get our finances back on track.
“A big part of that is the £18 million we’re putting into vital frontline services — support that will make a real difference for vulnerable adults and children across our borough. It’s actually the first time in a few years we’ve been able to invest at this level, which is a real milestone.
“That said, we’re not getting complacent. We’ll be keeping our spending controls in place for now, because they’ve helped get us to this point and they’re still important.
“And soon, we’ll be launching a consultation so residents can have their say on the budget proposals. We’ll listen to that feedback before we set the final budget early next year.”
The budget proposals will be discussed at the next meeting of the council’s cabinet. It takes place on Wednesday December 10 from 6pm at Dudley Council House, and members of the public are welcome to attend.