Dorset Council facing £29 million shortfall in next financial year
The authority says balancing their budget will be 'challenging'
Dorset Council's revealed it's facing a £29 million shortfall in its budget for next year (2023-24).
Bosses say work's underway to close the gap - admitting it will be 'challenging'.
Councils are required by law to have balanced budget books, with Dorset now warning difficult decisions will need to be made.
The authority says there are three variables, over which they have no control, making the situation tougher:
- Inflation: Dorset Council say 'costs are increasing at an unprecedented rate, affecting many services the council provides'. They've pointed out fuel costs as impacting local transport services, while infrastructure price increases are affecting capital costs for road works and new buildings
- Employee pay awards: The nationally agreed pay offer for next year alone is anticipated to cost the council an extra £6 million
- Adult social care: Dorset Council is seeing demand continuing to grow due to the aging population, and new Government reforms coming in over the next year will cost significant sums to implement
Cllr Gary Suttle, Portfolio Holder for Finance, Commercial and Capital Strategy, said:
“Once again, we face a challenging budget situation, as do nearly all councils across the country. Dorset Council continues to be under-funded by Government, but this is now exacerbated by inflation. As councillors, we must work hard over the coming months to set a balanced budget. This may require some difficult decisions.
“I’m acutely aware this comes at a time when people are increasingly struggling to make ends meet. Support for people who need it most will be prioritised and we’re continuing to press our MPs and the new Government for a better deal for our taxpayers.”