Dear resident,
The financial challenges local authorities face has been well documented. Just a couple of years ago Dudley was facing the real threat of a section 114 and the running of our finances being taken away from us.
But, while we are not out of the woods yet and there remains much work to do, we are starting to turn the tide and get our finances back on track.
So, at the same time as balancing the books, we are pleased to be in a position where we can invest around £18 million in critical frontline services to protect the most vulnerable in our borough.
This includes a £2 million investment into the opening of two children's homes, which will save the council around £800,000 a year on expensive placements outside the borough. A further £5 million will be spent in a bid to attract more foster carers.
Around £1 million has been set aside to help vulnerable adults live independently at home following hospital stays, while £300,000 will be made available to voluntary sector organisations which support with adult social care.
To support our long-term financial stability, we will be boosting our reserves (including general and earmarked reserves). This figure will rise to £72.8m by April 2031.
We will also be contributing £3.5 million to a transformation reserve, which will be used to help fund projects which can deliver future savings for the council.
Despite the positive position for the next financial year and the progress we have made, clear challenges still lie ahead and the picture for future years is uncertain, as we continue to experience the rising costs of delivering services. As it stands, the financial gap will increase to £11.7m by 2030/31.
We had hoped the funding settlement from Westminster would help to minimise the deficits for 2027/28 and beyond. However, the final settlement announced in February is below both national and regional averages and means we still need to find more savings in future years. We have been and will continue to lobby government for a fairer funding deal for Dudley.
In line with most other local authorities, one way we are raising money is by increasing our council tax rate by 4.99 per cent for the coming year. This includes a two per cent increase to meet the costs of adult social care. This equates to £1.66* per week for a band D property, which is comparable to the average cost of a loaf of bread.
Increasing council tax is never something we like to do as an authority but with the challenging financial climate we're in, almost every local authority in the country will be having to do exactly as we are doing.
Despite this increase, our council tax will still be the lowest regionally and continue to offer good value for money services to the people of this borough.
To help those most in need, £300,000 has been allocated per year to the discretionary council tax support scheme, replacing the one-off reserve funding used in the 2025/26 budget. This will provide a more sustainable basis for supporting residents who are facing extreme financial difficulties with their council tax payments.
While there remains uncertainty for future years and there will continue to be challenges ahead, I want to reassure you we remain committed to delivering essential high-quality services.
Councillor Patrick Harley, leader of Dudley Council
*The £1.66 figure is from the Dudley Council element. The rise is £2.04 per week when including the police and fire precept.
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