Budget could add £1.5m to Dudley Council's National Insurance bill

The borough’s new top finance officer, Brendan Arnold, revealed his estimate during questioning from members of the council’s Overview and Scrutiny Committee at its meeting on November 6.

He said the picture following the government’s budget on October 30 was still uncertain on how hard the increase would hit the authority’s already ailing finances.

He added the government was yet to announce how much extra cash was going to be given in grants to councils.

He said: “Those matters still need to be resolved into the calculation of the budget shortfall next year, I can’t give a specific figure .”

Another headache for council finance chiefs will be the increase in the minimum wage.

Mr Arnold told councillors very few council staff will be affected directly but the cost to council suppliers forced to pay their employees more will be passed on in higher prices.

The authority is working on next year’s spending and ways to save cash to plug the predicted £30m to £35m gap between what it spends and what it receives.

The council’s cabinet member for finance, Cllr Steve Clark, was not at the scrutiny meeting but told the Local Democracy Reporting Service: “The council – along with other councils – is seeking to clarify the local impact of the budget announcements. 

“We will be carrying out our budget consultation in the pre-Christmas period and there will be a budget scrutiny meeting when the provisional finance settlement has been received in late December. 

“Our budget for 2025/26 will be considered and set at full council in late February.”

The council is battling to fund savings and build up its reserves to cope with unexpected financial shocks which could force it into effectively declaring itself bankrupt.

 At the meeting Mr Arnold was asked if having to find an extra £1.5m for National Insurance would put the authority in further jeopardy.

Mr Arnold said: “I don’t believe that particular issue is going to cause a critical problem.”