Opinion split on latest finance settlement

Dudley Council’s coffers will get a boost from the government’s latest finance settlement but opinions are divided about how much it will help.

Local authorities are funded partly by grants from Westminster and on December 17 Labour politicians in London announced Dudley will get £75.9m in a new three-year deal.

The borough’s Labour group says the deal represents a 22 percent increase in the Conservative-run council’s spending power.

Dudley councillor and Labour MP for Stourbridge, Cat Eccles, said: “This is a multi-year settlement which will allow the council to plan ahead, something that hasn’t been possible for over ten years.

“This means more money for local services – cleaner and safer streets, fixing roads, protecting libraries, and reviving high streets. This is on top of additional funding for potholes, homelessness, and SEND. 

“I’ll be calling on Dudley Council to restore and improve our local services as it’s what residents deserve.”

Dudley’s Conservative leader, Cllr Patrick Harley, believes it is too soon to jump to conclusions and is frustrated by the timing of the announcement.

Cllr Harley said: “It’s far too early to get over excited as the devil will be in the detail. 

“As usual they have sent the settlement after 5pm yesterday and, with all the civil servants at Whitehall now getting merry and winding down, our finance staff must at the last hour pour through the details. 

“They have given a three-year settlement which is welcome but having taken away every single grant and funding stream, they have wrapped all of them into one single grant.

“Once officers have gone through the detail, which is quite extensive, we can determine whether we have the deal Labour MPs are getting excited about. 

“My hunch quite early is that we are probably £6-8m a year better off but I’m cautious without delving into the detail.”  

Cllr Shaukat Ali, Dudley Labour’s shadow cabinet member for finance, also hit out at ‘underinvestment’ from the previous Conservative governments and complained the council had made £6.1m in cuts to avoid effective bankruptcy. 

Cllr Ali said: “Core spending power fell by around a quarter under the Conservatives, placing enormous strain on services and staff. This announcement marks a turning point.”

Cllr Ali also praised the government’s new Fair Funding approach which aims to direct more money to less well-off areas.

He said: “Places that have been left behind will finally get the investment they deserve. This funding means more money for cleaner streets, better roads and safer communities.”

Although Dudley was facing a financial crisis at the end of 2024 with low reserves and a budget deficit, the current administration says it has restored financial stability.

Dudley’s cabinet member for finance, Cllr Steve Clark, said: “This is against a backdrop of continued and unprecedented challenges being faced by local authorities up and down the country battling valiantly to balance the books.

“I am particularly pleased that we have exceeded our target for the annual top up to our reserves, and now have more than £36 million set aside. 

“This will improve the overall financial resilience of the council to meet the challenges we face moving forwards.”