Dudley Council approves rent hike despite ‘poor’ scrutiny

A meeting of the Conservative-run authority’s cabinet on February 11 approved the hike as part of the £110m Housing Revenue Account (HRA) for the next financial year starting in April.

In previous years the HRA was approved by the full council but it was pulled from the last meeting after failing to get the support of opposition groups to back the minority Tory administration.

Dudley Labour leader, Councillor Adam Aston, told the cabinet meeting: “We as a Labour group have been criticised for holding the council to ransom on the HRA.

“We’re simply unable to support the report which asks Dudley tenants for an almost five percent increase in rent.

“The experience of tenants which are also our constituents doesn’t match the overwhelmingly positive narrative that is given to us as life as a tenant of Dudley Council.”

Dudley’s leaders blamed the Labour government for a long-term rent strategy that requires the maximum allowed increase in rent year on year.

They also argue not increasing rents by the maximum will add extra financial pressure in future years, while 76 percent of tenants get financial support for housing costs and many will see reduced service charges from April.

Dudley council leader, Councillor Patrick Harley, launched an attack on Labour’s role in scrutinising the HRA at meetings during the previous months.

Councillor Harley said: “There have been no questions of any relevance or detail asked at those meetings, it’s been left to the last minute.

“The quality of scrutiny was poor from the opposition party, it’s like Keir Starmer saying he has never lost a fight – to lose the fight you have to get in the ring.”

Councillor Aston was worried by underspends from previous budgets being carried over into the new HRA, which he said were amounts higher than he had seen before.

He said: “Budgets are approved but delivery capacity isn’t there or it masks deeper issues like poor project management, a lack of grip or unrealistic time tables.

“Residents don’t see the benefit of money that never turns into a service or building.”

He was told some of the cash being rolled into the next budget was a result of grants being received mid-year which had to be accepted immediately but which the council could not spend quickly enough to avoid adding them to the following year’s account.

Councillor Phil Atkins, Dudley cabinet member for development and regulation, said: “A third of the HRA underspend is due to increasing efficiencies and reduced borrowing.

“We are not spending as much on repayments, that is not going to impact on spending on properties, that is servicing debt.

“We calculate next year we will continue reducing borrowing rather than reducing spending.”

The housing budget is ring-fenced; a meeting of the full council set for February 23 will vote on the general fund budget and financial plan for the medium term.