Dorset Council are starting to send out council tax bills this week and have published an article which explains its budget and the reasons for the council tax increase.
The council has increased its budget for next financial year to £313 million (from £304 million last year). The annual budget pays for all the services the council provides to residents, communities and businesses.
The reasons for the increase in council tax include the impact of Covid-19, higher demand for services from residents which was already rising before the pandemic and a significant overspend at the end of the 2020-21 financial year
How the budget is being funded:
- Council tax increase – increasing council tax by just under 5%* (just under 2% increase in general council tax, and just under 3% to fund adult social care – known as the ‘adult social care precept’). This will generate an additional £12 million
- Pay freeze for staff - 0% pay award for staff. For illustration, a 1% cost of living increase would have cost £1 million
- Further efficiencies and savings, while protecting essential services. This will save £27.7 million
*This equates to the rate for a Band D property increasing from £1,694.79 to £1,779.39 – an increase of £84.60 for the year, or £1.62 per week.
Cllr Gary Suttle, Portfolio Holder for Finance, Commercial and Capital Strategy, said:
“It has been particularly challenging developing the budget for next financial year, 2021-22, due to the high level of uncertainty caused by the COVID pandemic. COVID has had a massive impact on our communities and our budget this year and this is likely to continue over the coming months.
“We developed proposals that will deliver a balanced budget, but it has not been easy and it is with a heavy heart that we have had to increase council tax increase. We understand that many residents and local businesses have been hit financially by the pandemic, and there will be support available for the hardest hit. The budget assumption of a pay freeze for staff is also made with a heavy heart when we are keenly aware how hard staff have worked for many months.
“These are tough choices, but we have to find ways to fund the support for communities through the pandemic and the ever-growing need among our residents for social care services. We continue to lobby the Government for further funding and we will endeavour to protect the vital council services on which so many residents rely.”
To read the full article on the Dorset Council website follow this link – Our budget for 2021-22 explained
