Dudley council approves rent hike and cuts to tax reductions

Sunday, 2 February 2025 18:47

By Martyn Smith, Local Democracy Reporter X @

Dudley Council’s budget will push the working class community to breaking point, according to one member of the authority.

The claim was made during a debate at a council meeting on January 30, which approved increases to council rent and cuts to council tax reduction for working-age residents.

The council met to vote on the changes, which are part of a planned package of measures from the ruling Conservative group, intended to deliver £42m in savings in the coming financial year.

Labour’s Cllr Caroline Reid told the meeting: “Reducing support for working age people from 70% to 40% is devastating, many residents are already struggling to cope with the rising cost of living.

“The working class community is being pushed to breaking point, and it is our responsibility to provide relief, not to add to their struggles.”

A report on the impact of the changes to CTR said around 16.9 percent of the 142,000 properties in the borough liable for council tax received the reduction. It added that approximately 13,000 cases will be worse due to the proposed changes and predicted an increase in the amount of work needed to recover unpaid council tax and the amount of debt that will be written off.

Despite the warnings, Dudley’s cabinet member for finance, Cllr Steve Clark, said: “If the savings do not go through from this we will have to find a further £4.2m in the budget.

“We are not taking away support completely, there is going to be a drop of £7.46 a week which I accept is a lot of money. “It’s not ideal but it is something we have got to do to balance the budget, we have made allowances to help the most vulnerable, we have got discretionary council tax relief which currently there is a budget of £274,000 in there and we are adding a further £1m.”

Cuts to CTR were approved with 33 councillors in favour, 26 against and there were four abstentions. Members then debated a proposed hike in council rents of 2.7 % which would add £2.60 per week which would make the average sum per week £99.08.

Cllr Ian Bevan, cabinet member for housing, said: “We recognise some of the proposals will impact on our tenants and these decisions have not been taken lightly nevertheless they are essential if we are to deliver housing services that are safe, efficient and customer focussed.”

His opposite number on the Labour benches, Cllr Jackie Cowell said: “I have never known housing be so ineffective at providing the most basic and fundamental services yet we are looking at the maximum permitted rent increase.

“It appears this Tory council has completely forgotten the purpose of the local authority housing department is to provide a service of last resort to those with the least financial resource in our communities.”

Cllr Cowell went on to call for cuts in service charges to council tenants which would be funded in part by better than expected reserves in the ring-fenced Housing Revenue Account.

At the end of the debate, councillors approved the increase in rents by 38 votes to 26.

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