Council's finance has 'stepped away from the edge'

The leader of Dudley Council has said "unpopular measures" will save his authority from the risk of effective bankruptcy.

Patrick Harley told BBC Politics Midlands that a tough budget for next year would allow the council to build rather than deplete its reserves.

But he accepted measures such as charging for green waste collections, scrapping free car parking and reducing staff numbers would be unpopular.

The councillor's assessment comes five months after a review of the authority found "extremely limited" progress in dealing with its financial challenges.

Harley said it was "too early to say" how many jobs could go and the authority was negotiating with staff and unions.

When local authorities cannot balance their budget, they must issue a section 114 notice, effectively declaring bankruptcy, and opening the door to government intervention to fix their finances.

This happened in neighbouring Birmingham in September 2023.

At the start of the year, Dudley Council's leader claimed it was a real possibility his authority would follow suit: "The bells are ringing loud and clear. There are some really tough decisions to make."

Eleven months later, the Conservative councillor said he was confident his authority was in calmer financial waters.

"We have moved further away from that edge, I'm pleased to say, but it hasn't been easy," he said.

The councillor added that building reserves by a planned £5m each year would help "weather those stormy days and avoid a [section] 114".

The Labour government promised £4bn extra for councils in October's Budget, after which the local government minister, Matthew Pennycook, said: "The government certainly recognises the pressures on local authorities and the burdens placed on households as a result of 14 years in which local government was run down."

But the Mr Harley said: "It's not good for Dudley at the moment... that Budget has cost us an extra £1.5m a year through various things such as National Insurance contributions.

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