Residents facing tax rise to balance council books

Stourbridge, in the metropolitan borough of Dudley, is one town where residents are facing higher council tax bills

People in Dudley are facing a 4.9% rise in council tax.

If approved, almost half the rise will be dedicated to paying for adult social care after costs for the local authority caused an overspend of £7.7m.

The budget for the coming year will be discussed at the council’s cabinet meeting on 11 January.

Deputy chief executive Balvinder Heran will tell councillors budget discussions in February 2023 had identified the need for a 4.9% rise and the situation was now worse.

In a report, Ms Heran said the council was now at a point where any further deterioration ran the risk of triggering a formal report under Section 114 of the Local Government Finance Act 1988.

The section 114 report is effectively declaring bankruptcy and the authority’s head of finance is already in talks with central government for emergency funding.

Birmingham City Council is among a number of local authorities that has isused such a notice.

Councillor Patrick Harley, the leader of Dudley Council, said increasing council tax had to happen

Councillor Patrick Harley, leader of Dudley Council, said it had been very clear about the financial position it found itself in.

“Increasing council tax is the right thing to do if we want to continue providing vital services for people," he said.

“We are still one of the lowest council tax rates in the country and certainly the lowest in the Black Country.”

Green waste charge

In October, measures were put forward by the council, which has predicted a £10.1m overspend.

They included freezing external recruitment and not extending contracts.

A report previously said it was "inevitable" the quality of services the council provided would be impacted.

It has now been confirmed one measure coming in to plug a deficit is the introduction of a new charge for collecting green waste.

Residents will be asked to pay £36 for year-round collections rather than getting free collections between April and November and paying £30 for six extra collections in the winter months.

Councillors will debate the charges in cabinet before the 2024/25 budget goes to full council for approval.