Dudley council asked to back measures as £10m overspend forecast

No new contracts "should be let", a report said

Measures including freezing external recruitment and not extending contracts have been put forward by a council which has predicted a £10.1m overspend.

Conservative run Dudley council's cabinet has been recommended to agree the outline of spending controls.

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

The Labour group said it was concerned the financial situation was "spiralling out of control".

The forecast overspend for 2023/24 includes an additional £6.3m for adult social care, an extra £2.8m for children's services and £2.9m more for housing and communities.

The report ahead of Wednesday evening's meeting said "significant reasons for budget variances" included the additional cost of agency staff being £9.5m.

No new contracts "should be let", the report added.

Existing agency and interim contracts should end, it said, and fixed-term contracts of employment should be terminated at their end date or next break point, while external recruitment "should be frozen".

It was proposed the cabinet approve the "immediate" introduction of spending controls to reduce the deficit in 2023/24 and the "ongoing impact" on future years.

Exemptions to measures are designed to maintain essential services and the authority's "ability to function".

Where exemptions did not apply, it was "inevitable that there will be an impact on the quality of services", the document from the chief executive and director of finance and legal services said.

In a statement, the Labour group said its leaders were concerned the financial situation in Dudley was "spiralling out of control", and "unless urgent action is taken, it will find itself in financial meltdown".