The leader of Dudley Council says the authority has turned a corner in getting its finances back on track to remain financially stable in future years.

In a report going to next week’s cabinet, members will hear that in the provisional outturn for 2024/25 the council had a surplus of £17m. This will be used to boost its reserves and financial resilience. 

The report sets out the spending across all directorates compared to budgets approved in February 2024 and also highlights £14.4m of savings delivered. 

However, the committee will be told while reserves have increased to £28.9m, they are 8% of the council’s budgeted income for 2025/26, significantly less than the average of all metropolitan councils of around 20%. This figure is, though, set to increase further under the council’s plan to add £5m to reserves each year for the next five years to ensure financial stability. 

Councillor Patrick Harley, leader of Dudley Council, said: “Like so many authorities across the country we have faced unprecedented challenges to our finances and have had to make some very tough decisions to balance the books. 

“With the considerable work we have swiftly taken to improve our financial position, this provisional outturn is significantly better than predicted. The turnaround has been quicker and far better than we ever anticipated.

“We have turned the corner in getting our finances back on track as well as boosting our reserves. We will continue to do this year on year as it can only strengthen our financial position and improve our resilience for future challenges. 

“However, while we have moved away from the threat of bankruptcy, we know we still have more work to do. 

“In addition to the changes underway to firm up our financial position and put us on a steadier path, we have started work to implement the council’s new operating model and a review into commissioning and procurement. This will ensure we can afford to continue to not only deliver essential high-quality services our residents can rely on but as those finances improve re-invest in those very same services to provide a helping hand to local business and residents alike.” 

The 2024/25 Provisional Revenue and Capital Outturn and Medium-Term Financial Strategy report goes to the next meeting of the cabinet on Thursday June 19.