DUDLEY council tax payers will be facing a hike of 4.9 percent as the authority battles to balance its books.

Almost half the rise will be dedicated to paying for adult social care after costs skyrocketed causing an overspend of £7.7m.

The budget for the coming year will be discussed at the council’s cabinet meeting on January 11 where councillors will be left in no doubt how serious the financial situation has become.

In her report to councillors deputy chief executive, Balvinder Heran, says budget discussions in February 2023 already identified the need for a 4.9 percent rise and the situation is now worse.

She added: “The council is now at a point where any further deterioration runs the risk of triggering a formal report under Section 114 of the Local Government Finance Act 1988.”

The section 114 report is effectively declaring bankruptcy and the authority’s head of finance is already in talks with central government for emergency funding.

Councillor Patrick Harley, leader of Dudley Council, said: “We have been very clear about the financial position we find ourselves in and we have to do everything we can to deliver a balanced, sustainable budget.

“Increasing council tax is the right thing to do if we want to continue providing vital services for people.

“We are still one of the lowest council tax rates in the country and certainly the lowest in the Black Country.”

Among the measures coming in to plug a forecast deficit of £14.2m in the council’s annual costs of £321m is the introduction of a new charge for collecting green waste.

Residents will be asked to pay £36 for year round collections rather than getting free collections between April and November and paying £30 for six extra collections in the winter months.

Councillor Damian Corfield, cabinet member for highways and environmental services, said: “Most councils, including our neighbours in Sandwell and Wolverhampton, are already charging to collect green waste. Most are charging more than we propose to charge.”

Councillors will debate the charges in cabinet before the 2024/25 budget goes to full council for approval.