DORSET Council will face a challenging budget as it is on track to overspend by £10.1m this financial year.

The council said it is under extreme financial pressure due to increased demand for placement in adult and children’s social care, rising costs to deliver services and reduced funding.  

The £10.1m overspend equates to 2.7% of the council’s total budget of £376.7 million.  

Dorset Council provides a mix of around 450 statutory and discretionary services to 389,000 residents and businesses. 

A Dorset Council spokesperson said the bulk of the predicted overspend had been anticipated, with £8.6m to be saved from the council’s transformation programme – the details of which will come in autumn. 

Cllr Simon Clifford, cabinet member for finance and capital strategy, said Dorset Council faces a “challenging budget situation” which could involve making some tough decisions in a bid to balance finances. 

“The 2024-25 budget was set by the previous Conservative administration, and as the new administration we have inherited it, including the £8.6 million black hole,” he said. 

“It is essential for us to understand the developing financial performance and projected position this year and we are acting quickly to make sure that resources are used efficiently to deliver the council’s services in a sustainable way.  

“This may involve some difficult decisions.  

“As councillors our focus now is to address and reduce the forecast budget gap for year-end. We have asked senior officers to work to reduce the forecast overspend over the coming weeks.” 

A report on the council’s finances for the first four months of the year will be considered at the cabinet meeting on September 10.  

The new Labour government has not yet set out the likely funding arrangements for stretched local authorities – this will come with the government’s October budget and the funding settlement in December

More information on how the council’s budget is set and spent is available on the Dorset Council website at dorsetcouncil.gov.uk/our-budget-explained