Dudley Council is in the process of finalising its spending for the next financial year and facing the tough task of saving and eye-watering £42m to balance the books.

Proposals in a lengthy document outlining the Medium Term Financial Strategy (MTFS) include reductions in staffing, restructuring of services and increased fees at the Conservative-run authority.

Labour’s Cllr Shaukat Ali said: “In 25 years on the council, I have never seen anything like this; it has got to be the most deep-hitting budget I have seen.”

As Dudley Labour’s shadow cabinet member for finance, Cllr Ali regularly clashes with the Tory leader of the council, Cllr Patrick Harley, and was quick to aim an attack in his direction.

Cllr Ali said: “Cllr Harley said this is a test case for how to balance the books, it is more like a test case of how to take the council to the brink of bankruptcy and wield the axe on local residents.”

Cllr Harley hit back, he said: “Labour’s stance is ridiculous, they are not showing leadership, they have gone back to the juvenile politics of envy. “They have told us we should have done these things a long time ago – if we should have done them a long time ago then backing them now is even more paramount.

“When we ask ‘are you proposing an alternative budget’ the answer is ‘no’, they can propose to take out A, B, C and D but in order to do that they have got to put something in its place.”

Cllr Ali said: “We aim to make Dudley more prosperous and get more help from the government.”

He added a Labour administration would look at where the biggest organisations in Dudley spend their money, and encourage them to spend at least 10% in the borough. He also called for a review of the formula used to calculate how much money is provided to councils from Westminster to “Rebalance this for a fair and equitable way of supporting local authorities”.

Cllr Ali added: “Over the last 14 years money has gone away from authorities where the need is more, we need to review that, we have got to look at a redistribution of funds.”