Budget consultation

We want to have your thoughts as we start to budget for the next financial year.

The 2026-27 budget – have your say

In this consultation, we will explain the current financial position and listen to your views on proposed Council Tax changes and spending priorities for the next 12 months.

We will also look at:

Where Dudley Council gets money from 
How it spends money
The financial challenges that the council is facing in the year ahead
How the council can raise funds and spend the budget next year

We will consider all the responses when we draw up the final budget proposals.

The results of the consultation will be included in a final report when the budget is set in February 2026.

You have until 23 January 2026 to complete the consultation.

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2026/27 Budget Consultation

Where does Dudley Council get its money from?

Image showing where Dudley gets its money - Council Tax (adult social care precept) £26 million or 7.2% - Government grants £111 million or 30.2% - Council Tax £141 million or 38.4% - Business rates £88 million or £24.2%

Dudley Council had a budget of £367million to spend in 2025/26.

Each year, most of the council’s money comes from government grants, Business Rates and Council Tax. In 2025/26, this was:

Government Grants (£111m or 30.2%)

Money provided by the government to support either provision of council services, or delivery of specific projects.

Business Rates (£88m or 24.2%)

The council's share of money collected on properties like offices, shops, pubs and warehouses. 

Council Tax (£141m or 38.4%)

Money received from Dudley's residents through Council Tax bills, to spend on all service areas.

Council Tax - adult social care precept (£26m or 7.2%)

Money received from Dudley's residents through Council Tax bills, to spend only on adult social care .

How does Dudley Council spend its budget?

Image showing how Dudley spends its money - Communities and growth £47 million or 12.9% - Public health £0.3 million or 0.1% - Adult social care £137 million or 37.5% - Central resources £65 million or 17.5% - Children and yound people £87 million or 23.7% - Core business £19 million or 5.2% - Housing and assets £11 million or £3.1%

The council spends its budget on many different services, from housing, to caring for children and adults.

77p in every £1 is spent on people's services (care for adults and children), public health and communities.

This leaves 23p in every £1 for everything else.

The amounts below show how much the Council has budgeted to spend on each service area this financial year (2025/26):

Adult Social Care (£137m or 37.5%) including

adult care packages
equipment and assistive technology
family carers support
housing support and social work

Central Resources and Capital Financing (£65m or 17.7%) including

capital investment
insurance premiums
councillor costs and pay inflation

Children and Young People (£87m or 23.7%) including

children's social care
special educational needs and disabilities (SEND)
school transport
safeguarding
youth justice and community nursing

Core Business Services (£19m or 5.2%) including

legal services
human resources
communications
finance and information technology

Housing and Assets (£11m or 3.1%) including

homelessness
planning and enforcement

Communities and Growth (£47m or 12.9%) including

road maintenance
street lighting
regeneration
passenger transport
waste
environment
Dudley Archives

Public Health (£0.3m or 0.1%) including

health visiting
school nursing
libraries
arts
drug and alcohol treatment services
inclusion and mental health

In February 2025, the Council approved its Budget for 2025-26 (the period from 1 April 2025 to 31 March 2026).

This included a revenue budget of £367,421 for 2025-26 and a capital programme of £617, 453 from 2025 to 2030.

2025-2026 Budget details report

As part of its 2025-26 Budget, the council agreed the council tax rate for residents for 1 April 2025 to 31 March 2026.

Dudley Council is currently forecasting a £1.3m overspend against its £367m budget this year.

This includes £1.62m in additional cost pressures that have arisen since the budget was set.

The council is experiencing financial strain as demand for services continues to rise especially in areas like adult and children’s care. More residents are relying on these vital services, while the cost of delivering them is increasing.

These pressures mean the council must make difficult decisions about how to manage its resources and prioritise spending.

Can the council spend less on any services? 

The council is legally required to deliver most of the services it provides.  It does not have an option to stop maintaining local roads, provide housing, supporting vulnerable adults and children, disposing of the borough’s waste and many more.

However, the council is continually working to deliver services more efficiently by reviewing how services are run. It is investing in smarter ways of working and finding savings through transformation and innovation.

Despite these efforts, rising demand means the council must find savings just to maintain current service levels.

Are other councils in England facing similar challenges? 

Yes. These are unprecedented times for local government, with rising costs and increasing demand for services putting pressure on budgets nationwide.

Government funding

For many years, the money received from government has not kept pace with the increased costs that the council faces. 

Along with many councils, Dudley Council lobbies government to ask for more funding. There is regular contact with Dudley’s MPs to explain the council’s situation and request they lobby on our behalf. The council’s leaders also speak directly with government to explain where support is needed.

Council Tax

This year the council is planning to increase Council Tax by the maximum available (4.99%), comprising:

2.99% for Council Tax (to cover all services) 
2% for the adult social care precept (specifically for adult social care)

This increase was equivalent to:

an additional £1.29 per week increase for a Band B property
an additional £1.66 per week increase for a Band D property

What happens if the council doesn’t get more money? 

To maintain the levels of service currently offered, more money is needed in the council’s budget. Otherwise, some services currently provided will have to be delivered differently, reduced, or lost.

Draft budget report to cabinet 2026/27

Budget consultation

The 2026-27 budget – have your say

Where does Dudley Council get its money from?

Government Grants (£111m or 30.2%)

Business Rates (£88m or 24.2%)

Council Tax (£141m or 38.4%)

Council Tax - adult social care precept (£26m or 7.2%)

How does Dudley Council spend its budget?

Adult Social Care (£137m or 37.5%) including

Central Resources and Capital Financing (£65m or 17.7%) including

Children and Young People (£87m or 23.7%) including

Core Business Services (£19m or 5.2%) including

Housing and Assets (£11m or 3.1%) including

Communities and Growth (£47m or 12.9%) including

Public Health (£0.3m or 0.1%) including

How we got here - 2025-26 Budget

What challenges is Dudley Council facing this year?

Can the council spend less on any services?

Are other councils in England facing similar challenges?

How can Dudley Council get more money?

Government funding

Council Tax

What happens if the council doesn’t get more money?

Government Grants (£111m or 30.2%)

Council Tax (£141m or 38.4%)

Can the council spend less on any services? 

Are other councils in England facing similar challenges? 

What happens if the council doesn’t get more money? 