Planned budget for Dudley has risks 'which cannot be ignored', councillors warned

At December’s meeting of the Conservative-led council’s cabinet, the draft budget for the coming financial year was on the agenda.

The document will form the basis of a public consultation before the council agrees its spending plans at the end of February.

Labour’s finance spokesperson, Cllr Shaukat Ali, said: “The headline position appears positive but there remain deep long-term risks that cannot be ignored.

“The balance position for 2026/27 is built on a number of assumptions, a shift in any of these could reopen the budget almost immediately.

“The medium term outlook is significantly concerning, by 30/31 the gap is projected to rise to £35m.

“The financial position is stabilising but it remains fragile.”

The draft budget report predicts the gap between what the council spends and its income for the 26/27 financial year will be £4.5m but says the deficit will be closed without the need for more savings on top of what has already been identified.

The report added: “To ensure financial stability and sustainability, it is essential that the council starts planning now for future years.”

Cabinet member for finance, Cllr Steve Clark, said: “Local government is continuing to face significant challenges and Dudley is no exception.

“The government is currently reviewing how funding is allocated to local authorities and we expect to receive draft allocations in mid-December so, because of this, the budget has had to be based on a number of assumptions and an updated report will come back to cabinet on the fourteenth of January.

“For next year we have identified £3.5m of new savings, these are efficiency savings meaning we are doing the same or more for less rather than cuts to our services.”

Among the increases outlined in the proposed budget is a hike of 4.8 percent to council rent and Labour’s Cllr Jackie Cowell was concerned the January 29 cabinet meeting is set to be immediately before a full council meeting which will approve the rent rise.

Cllr Cowell said: “It doesn’t allow for any consideration of issues that come up in cabinet.”

There is a cabinet meeting set for January 14 and a meeting of the council’s housing scrutiny committee the following day.

Dudley’s interim director of resources, Lisa Kitto, told Cllr Cowell: “There is an opportunity for scrutiny in mid-January, the decision is on January 29, there is a real opportunity for scrutiny before then.”

Cllr Cowell attempted to make a further point but was told by council leader, Cllr Patrick Harley, her concern had been answered.

Cllr Cowell said: “My concern is the answer. Last year was the first time this was done, there used to be a gap between cabinet and council, I don’t think it is right.”