£12.6m overspend for new Dorset Council

Dorset Council is expecting to breach its ‘directly-controlled’ budget by £7.1 million and funding for schools and education by up to £5.5 million in its first financial year.

The new council’s forecast overspend is mainly due to a growing demand in support for children with Special Educational Needs and Disabilities (SEND) and the rising number of children taken into care to keep them safe from immediate risk of harm.

In April, Dorset's nine councils merged into two in an attempt to save £108 million over the next six years. Since the reorganisation, the number of councillors across the area has reduced from 204 to 82, saving £400,000, while cuts to the number of senior managers and staff are predicted to save the authority £5.2 million in 2019/20.

The council has reserves of around £29 million – an improved position since the 2019-20 budget was agreed in February thanks to savings made by all six former councils. The minimum recommended level of reserves for Dorset Council is £14.5 million.

Peter Wharf, deputy leader and portfolio holder for Corporate Development and Change, said: “This financial year is challenging for us. But I am confident that the local government reorganisation and the creation of Dorset Council put us in the best possible position to manage our financial position. We will continue to push for better funding for social care from Government. In the meantime, I have confidence that officers across the council will work hard to improve our financial position throughout the year.”