Council tax up by 4.7pc

Dudley council tax bills will rise by 4.7 per cent from April after council leaders agreed to an inflation-busting rise, adding more than £50 to average bills.

In an unprecedented step, finance bosses also admitted bills would continue to outstrip inflation for at least the next three years, rising by 4.5 per cent next year and 4.8 per cent in 2009.

The package, passed by a majority vote last night, confirmed cuts of £676,000 from the education budget and £1.5million from housing.

There will be extra cash for green waste collection and leisure facilities.

Despite the rise, Dudley council bills remain the lowest in the Black Country at £1145.13 for Band D households.

Finance cabinet member Councillor Anne Millward said the rise was part of a "prudent and pragmatic" policy to deliver high quality services while plugging an £8million government funding gap.

Opposition councillors attacked the ruling Tory group for getting into "a fine mess" with finances.

Shadow finance spokesman Councillor Shaukat Ali said: "The Tory administration has lost grip on the council finances."

Liberal Democrat finance spokesman Councillor Richard Burt said: "People just can't afford to pay these kind of increases."