We want to have your thoughts as we start to budget for the next financial year.
The 2026-27 budget – have your say
The Council’s draft budget was published on 10 December and an update will be presented to Cabinet on 14 January. Central to the draft budget is the need to ensure long term financial stability of the council as well as protecting the delivery of services. The draft budget includes investment of more than £18m in addition to £20m for pay and non-pay inflation. The financial challenges however are real and to balance the books, the budget includes efficiency savings of over £10m and an assumption that our council tax will increase by 4.99%. This is the maximum allowed as the Council rebuilds its financial position including the need to build our reserves. Based on the budget proposals, reserves will increase to £48.8m by April 2026 and to £66.2m by 2031.
The Council is making good progress in developing a balanced budget for 2026/27 however there is a gap in our finances from 2027/28 and we have to start planning for this now. Our budget proposals provide some funding to support transformation that will reduce the cost of our business processes as well as looking at ways in which we can reduce demand and deliver improved outcomes. We want your views on our budget proposals before the final budget is set in February.
In February 2025, the Council approved its Budget for 2025-26 (the period from 1 April 2025 to 31 March 2026).
This included a revenue budget of £367,421 for 2025-26 and a capital programme of £617, 453 from 2025 to 2030.
As part of its 2025-26 Budget, the council agreed the council tax rate for residents for 1 April 2025 to 31 March 2026.
Dudley Council is currently forecasting a £1.3m overspend against its £367m budget this year.
This includes £1.62m in additional cost pressures that have arisen since the budget was set.
The council is experiencing financial strain as demand for services continues to rise especially in areas like adult and children’s care. More residents are relying on these vital services, while the cost of delivering them is increasing.
These pressures mean the council must make difficult decisions about how to manage its resources and prioritise spending.
Can the council spend less on any services?
The council is legally required to deliver most of the services it provides. It does not have an option to stop maintaining local roads, provide housing, supporting vulnerable adults and children, disposing of the borough’s waste and many more.
However, the council is continually working to deliver services more efficiently by reviewing how services are run. It is investing in smarter ways of working and finding savings through transformation and innovation.
Despite these efforts, rising demand means the council must find savings just to maintain current service levels.
Are other councils in England facing similar challenges?
Yes. These are unprecedented times for local government, with rising costs and increasing demand for services putting pressure on budgets nationwide.
Government funding
For many years, the money received from government has not kept pace with the increased costs that the council faces.
Along with many councils, Dudley Council lobbies government to ask for more funding. There is regular contact with Dudley’s MPs to explain the council’s situation and request they lobby on our behalf. The council’s leaders also speak directly with government to explain where support is needed.
Council Tax
This year the council is planning to increase Council Tax by the maximum available (4.99%), comprising:
2.99% for Council Tax (to cover all services)
2% for the adult social care precept (specifically for adult social care)
This increase was equivalent to:
an additional £1.29 per week increase for a Band B property
an additional £1.66 per week increase for a Band D property
What happens if the council doesn’t get more money?
To maintain the levels of service currently offered, more money is needed in the council’s budget. Otherwise, some services currently provided will have to be delivered differently, reduced, or lost.
