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Dudley Council has cut its predicted overspend to £1.3m but is facing eye-watering extra costs for children's services. A financial report, based on the authority's financial position at the end of September 2025, reduces the total forecast deficit by £1.2m from previous predictions. The revised figures also show the council is putting cash back into reserves while making significant savings. Read more: 'I'm no Greta Thunberg' says Dudley transformation boss as he backs climate change agenda Read more: Send parents demand action on special needs during poignant protest The report, from Lisa Kitto, Dudley's interim director of resources, and the council's chief executive, Balvinder Heran, said: "The general fund unearmarked reserve was £28.8m as at 31st March 2025 and is forecast to increase by £7.5m to £36.3m by 31st March 2026. "The 2025/26 budget includes £61.1m of savings to be delivered, as of 30 September 2025, a total of £53.6m is on track to be delivered." The report includes details of lower than predicted spending in many council departments including health and wellbeing, environment, housing, regeneration and enterprise and corporate and treasury. Other departments are costing more than expected, children's services has a forecast overspend of £5m. A significant part of the predicted extra spending in the department is caused by higher numbers of external residential placements for young people. At the start of the year the number of equivalent to full year placements was 53.72 with an average cost of £6,900 per week. The council is now reporting the number has gone up to 64.92 equivalent to full year placements with an average cost of £7,000 per week. Supported accommodation for older children cost the council an extra £1m which added to the predicted overspend. Want the latest headlines and breaking news emailed to your inbox? Sign up here, it’s free. The council's finance and legal department is predicted to spend £1.7m more than forecast which included an extra £800,000 related to difficulty in recruiting solicitors. The report said: "The service is developing plans to manage recruitment and reduce the pressure."
