Council tax hike set to be fixed for three years

Dudley’s council tax increase seems certain be 4.99 percent for the next three years regardless of who is in control.

The council’s cabinet member for finance, Cllr Steve Clark, confirmed the latest government settlement is a three-year plan which effectively locks in the maximum rise an authority can approve without additional measures including a local referendum.

Cllr Clark’s confirmation came during a debate on the latest report on the council’s finances at a meeting of Dudley’s cabinet on October 8.

Cllr Clark said: “We have had a £12m settlement whereas we were expecting £18m.

“The settlement was very poor, one of the poorest we have had. It is for the next three years which we haven’t had in the past which is welcome.

“We actually know what’s going to be put in rather than doing it year by year.”

The council is currently controlled by a minority Conservative administration with Reform UK as the second largest group and eyeing an outright majority after next May’s local elections.

Dudley’s Reform UK leader, Cllr Marco Longhi, said: “Just for the avoidance of doubt, if I have understood it correctly, what we are saying is that whoever controls the council next year and the year after they will be forced to have a 4.99 percent increase in council tax.”

Cllr Clark told Cllr Longhi the current settlement is based on increasing council tax by 4.99 percent for the next three years.

Cllr Clark added: “If Reform take over next year, part of the settlement we’ve already had was to increase that by 4.99 percent.”

Labour’s Cllr Qasim Mughal was quick to defend the government by pointing out that the council has the chance to approve the budget for the year, including any council tax hike.

He said: “There is no one forcing this council to vote through a budget that is a 4.99 percent increase.

“That’s a decision for the 72 councillors, there has not been any direction from the government forcing us, there is no mandate from the government to say yes.”

Council leader, Cllr Patrick Harley, told Cllr Mughal: “You are right there is nothing mandatory but that settlement gives the assumption that your council tax increase should be 4.9 percent for the next three years and if it doesn’t you have to take further cuts from elsewhere.”

The council’s chief finance officer, Simon Allsop, added: “There is an expectation within the settlement announcement for the next three years that assumes the 4.99 percent increase in council tax will be taken.”

By Martyn Smith | Local Democracy Reporting Service