Predicted increase in government cash 'was expected'

Michael Gove, Secretary of State for Levelling Up, is about to announce an increase of 6.5 per cent in financial support for cash-strapped local authorities, according to the Financial Times.

Council leader Patrick Harley has admitted Dudley’s finances are in a perilous state but the reported rise appears to be already factored into the council’s plans.

Cllr Steve Clark, Dudley cabinet member for finance, legal and human resources, said: “The expected national average of 6.5 per cent is roughly in line with our initial forecast and we will be looking more closely at the detail over the next few days to analyse the likely impact.”

The extra cash for the 2024/25 financial year is reported to be costing the government £65bn and the government is expected to claim it is above the rate of inflation, currently 4.6 per cent.

However the September rate was 6.7 per cent which is the rate used to calculate increases in benefits.

Cllr Clark also said Dudley had not adopted an idea being trialled elsewhere in England – where officers work a four-day week, without any loss of pay.

The scheme is designed to act as an incentive to encourage recruitment and staff retention.

Cllr Clark said: “A four-day working week for Dudley Council officers has not been considered.”

The government is also not in favour of the idea and has threatened to take action against authorities that go four days.

Minister for Local Government Lee Rowley said: “The Government is being crystal clear that it does not support the adoption of the four-day working week within the local government sector.

“Local authorities that are considering adopting it should not do so. Those who have adopted it already should end the practice immediately.

“Those councils who continue to disregard this guidance are now on notice that the Government will take necessary steps in the coming months ahead to ensure this practice is ended within local government.”