DUDLEY Council’s cabinet will be asked to approve an improvement plan after a report suggested a raft of changes need to be made to steer the authority forward through challenging financial times.

An 11-point plan was suggested in the Local Government Association Peer Review report which was issued after a visit by local government officers and councillors from other authorities in March.

The report stated the council’s financial strategy had been based on a programme of annual efficiencies to make savings, without strategic focus and drawing on reserves to balance the books, and it warned: “This approach is not sustainable and means the financial challenge facing the council remains significant.”

It says a new strategy and approach, guided by an agreed longer term vision, is needed and adds: “It needs to be implemented at pace with strong corporate leadership, ownership and focus from both councillors and officers.”

It warns reserves are at a low level compared to other councils and says without further savings reserves will reduce to just £6.3million by 2019/20 and its adds: “The budget is everyone’s responsibility.”

The report praised the authority for its work to turn around children’s services saying it showed the “council can respond with pace and innovation to deliver major service improvement” and added: “The fact that Dudley has made such excellent progress is testament to the focus and commitment by politicians and officers.”

But it says learning from that success needs to be embedded across the whole organisation to support improvement and transformation.

It calls for a shared vision for both the development of the borough and the future role of the council.

The report acknowledges the council’s relationships with key partners are positive and praises its priority of growing the economy and creating jobs - but it says relationships, attitudes and behaviours from both councillors and officers need to develop to create a culture that better enables dialogue.

UKIP councillor Dean Perks said the report’s frank assessment of the council’s position was “one of the final nails in the coffin” that led to the purple party’s decision to support the Conservatives to grab power from the ruling Labour group. He added: “It sort of backed up everything that UKIP had said all the way through."

Conservative councillor Patrick Harley, new leader of the council, said: “There was nothing that came as a massive shock to us and the wheels are already in motion so we can continue on our improvement journey.” He described the peer review report as "largely very positive” and added: “We welcome in particular the comments on our work in regeneration and children’s services.

“The report reminded us of how proud we should all be to live and work in Dudley.

“It also mentioned a few areas where we can improve.

“It’s up to us now to work on that so we can continue to shout loud and proud about Dudley as the historic capital of the Black Country."

The peer review report, and the council’s response, will be discussed by the cabinet at Dudley Council House on Thursday June 29 from 6pm.