Dorset Council facing £10.1 million overspend this year
The authority say they're 'under extreme financial pressure'
Dorset Council say they expect to have a £10.1 million overspend during this financial year, based on the figures for the first four months.
The deficit works out as 2.7% of their total budget of £376.7 million, which goes into around 450 services for 389,000 residents and businesses.
A report to the authority has highlighted 'extreme pressure through external factors, such as increased demand for placements in adults and children’s social care, rising costs of delivering services and reduced funding'.
Dorset Council won't find out how Government cash they'll get for next year until the October Budget and the funding settlement in December.
Cllr Simon Clifford, Cabinet Member for Finance and Capital Strategy, said:
“We face a challenging budget situation, as do nearly all councils across the country. 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. 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.”
Work is already underway on setting the budget for next financial year, 2025-26.