Dudley councillors clashed over whether years of cuts had gone too deep and become 'manufactured neglect' as the authority reported a provisional underspend of £14m for the 2025/26 financial year.
At August's meeting of the Conservative-run council's cabinet, the latest budget reports were on the agenda, including the £14m underspend. In 2025 the authority made around £40m in savings after a financial shock which pushed the council dangerously close to effective bankruptcy.
Underspend hailed as recovery milestone
A report from interim director of resources, Audra Statham, said: 'The 2025/26 provisional outturn represents a significant milestone in Dudley Council's improvement and recovery journey.'
She added: 'Through strong financial management, robust governance and disciplined budget control, the council has delivered a net revenue underspend of £14.0m, enabling strengthening of reserves and enhancing the council's resilience to future financial challenges and risks.'
Labour group leader, Cllr Shaukat Ali, offered a different view. He said: 'Looking at it from a different angle from local residents, what local residents are saying is "if the council has got £14m spare then why do services still feel like they are failing?"'
'I think that is a difficult line to cross, an underspend is only a sign of success when services are performing well,' he continued. 'We know, and the report states it, services are struggling, we've got vacancies, the equipment is out of date.'
Reform UK accuses council of 'manufactured neglect'
Dudley cabinet member for resources, Cllr Steve Clark, defended the underspend. He said: 'We are in a good position now so that we can reinvest in those services, I'm not unhappy with that £14m, I think it is the correct way of doing it.'
He added: 'What would you be telling me if we had a £14m overspend?'
Reform UK's Cllr Dr Rob Clinton went further, telling Cllr Clark his group made cuts because they did not want the Conservatives to be the party that took the council into bankruptcy.
Cllr Clinton told Cllr Clark: 'In reality what's been going on is manufactured neglect and you mentioned there is still further work to be done, does that mean there are further cuts to be made?'
Cllr Clark shot back: 'I don't like your term, manufactured neglect, I think that is just aggressive and a nasty way of talking about it – it's just not necessary.'
Council defends new operating model
Cllr Clark explained the authority had changed its approach to deliver the savings. He said: 'We've changed the total operating model of how the whole council works, that's given us the savings we needed.'
The £14m underspend is expected to be used to strengthen reserves and improve the council's resilience to future financial challenges, according to the report from the interim director of resources.
