Taxpayers in Dudley could be saddled with a £40 million debt to fund a controversial equal pay deal for council staff, it was revealed today.

Dudley Council estimates implementing the single status pay deal for 11,000 workers will cost between £30 and £40 million.

Opposition leaders claim this year’s bumper council tax and rent increases, both of around five per cent, will not cover the shortfall and the authority will be forced to borrow the money through a long-term loan.

The issue will be discussed at Dudley Council’s full meeting on Monday. The agenda for the meeting talks about £50 million being borrowed from the Government’s Public Works Loan Board, money which it is believed to include up to £40 million needed to fund single status.

Read the full story in the Express & StarTaxpayers in Dudley could be saddled with a £40 million debt to fund a controversial equal pay deal for council staff, it was revealed today.

Dudley Council estimates implementing the single status pay deal for 11,000 workers will cost between £30 and £40 million.

Opposition leaders claim this year’s bumper council tax and rent increases, both of around five per cent, will not cover the shortfall and the authority will be forced to borrow the money through a long-term loan.

The issue will be discussed at Dudley Council’s full meeting on Monday. The agenda for the meeting talks about £50 million being borrowed from the Government’s Public Works Loan Board, money which it is believed to include up to £40 million needed to fund single status.Councillor David Sparks, Labour leader on the Conservative-led council, said the pay deal would be hugely expensive.

“It is going to cost a massive amount of money so therefore it is inevitable that some of that money will be borrowed,” he said.

“The Government has given approval for that money to be spread over a number of years. But where there is an issue is about whether this council, by going for low rate increases for a number of years, has built up a problem for itself. What is happening in Dudley is a decision to pay for the deal by borrowing and we are looking at figures of £30 to £40 million.”

The news is a blow to residents still reeling from top-rate council tax and rent rises confirmed earlier this year. The average band D householder will see the bill rise by £50 from £1,010 to £1,060 and the average tenant’s rent will shoot up £3.34 each week to more than £64.

By Mark Mudie