Dudley Council Reduces Forecast Deficit But Faces Rising Children’s Services Costs
Dudley Council has lowered its expected overspend to £1.3 million while confronting sharp increases in expenses for children’s services. A financial report, reflecting the council’s position at the end of September 2025, shows a £1.2 million reduction in the total predicted deficit compared to earlier estimates.
The revised data indicate the council is replenishing reserves and achieving notable savings.
Financial Report Highlights
“The general fund unearmarked reserve was £28.8m as at March 31 2025 and is forecast to increase by £7.5m to £36.3m by March 31 2026.
The 2025/26 budget includes £61.1m of savings to be delivered, as of September 30 2025, a total of £53.6m is on track to be delivered.”
Departmental Spending Overview
Spending is lower than anticipated in several departments, including health and wellbeing, environment, housing, regeneration and enterprise, and corporate and treasury services.
However, children’s services are projected to overspend by £5 million, largely due to an increase in external residential placements for young people.
- At the start of 2025, the number of full-year equivalent placements was 53.72, with an average weekly cost of £6,900.
- This figure has risen to 64 placements, contributing to the higher costs.
Summary
Dudley Council is managing to reduce its overall predicted deficit and make savings, but rising costs in children’s services, mainly from increased residential placements, pose a significant financial challenge.
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