Dorset Council to underspend by £50m on projects as borrowing surges
Dorset Council faces £50m underspend on capital projects amid growing concerns over transparency and trust
Dorset Council is on course to spend £50 million less than planned on capital projects this year, due largely to what officials are calling "higher than expected slippage" in the council’s ambitious £434m investment programme.
The shortfall emerged in a mid-year financial review presented to the council’s audit and governance committee, revealing a series of red flags across numerous budget lines.
Councillors were also told that external borrowing has risen from £225 million at the start of the year to £292 million - raising questions about the authority’s long-term financial strategy.
Cllr Gary Suttle, chair of the committee, was candid in his assessment: “I fail to see how anyone can be happy with performance when most of the budget lines are showing red.”
Doubts were also aired over the council’s ‘transformation programme’, a "spend to save" initiative aiming to deliver long-term efficiency gains.
Some members fear the programme is underfunded and may fall short of delivering the multi-million-pound savings envisioned.
Council leaders say they expect to save £3 million this year through voluntary redundancies, with around 300 posts set to be cut in the coming months.
Lisa Cotton, corporate director for transformation, confirmed that consultation with staff had begun, with major structural changes expected this autumn.
Portfolio holder for finance, Cllr Simon Clifford said: “The organisation has got to learn and change its working practices, particularly around transparency, to win people over and regain that trust.”