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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.

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

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