Trevor Bevins, Local Democracy Reporter.
Dorset Council faces a £30million budget gap as rising demand for adult and children’s services puts its finances under pressure.
The authority say frontline services will be protected “where possible”, with prevention and changes to the way services are delivered central to efforts to balance the books.
The council’s medium-term financial plan sets out an approach intended to avoid an unsustainable reliance on reserves, although the funding gap remains classed as high risk.
That risk rating is expected to fall to medium once all the planned measures are in place before the end of the financial year in April 2027.
Next year’s budget was put at £470million, covering services including care, roads, housing and support for the voluntary sector, alongside investment in buses and community transport.
Finance portfolio holder Cllr Simon Clifford told this week’s Cabinet meeting that these are particularly challenging times for rural councils, arguing that Dorset had lost out through funding redistribution to other authorities.
He said much of the redistributed money had gone to councils in the north and Labour-run areas, a change he argued unfairly penalised Dorset.
Social care for adults and children accounted for most of the council’s spending, he said, with a national review offering the potential to address how it is funded into the future.
A forecast £15million overspend in children’s services was reducing, said the financial lead, with 450 children currently in the care of the council.
Deputy Council Leader Cllr Richard said the plan took a realistic approach by acknowledging the funding gap, rather than relying on overly optimistic assumptions.
He said it offered a credible framework for a balanced and sustainable budget, although significant work remained to close the shortfall.
The meeting heard that reserves were forecast to stand at £160million in March 2027, with a general fund balance increasing to £40.7million. Cllr Biggs said this would provide resilience against future shocks.
He said the capital programme had been brought under control to make it affordable and achievable, and the council would continue lobbying the Government for funding.
He also argued that devolution would make a significant contribution to the council’s long-term finances, adding: “The only way is, indeed, Wessex.”
