A report is due to go before Dorset Council Cabinet members at its meeting on 27 July, outlining the council’s financial position at the end of the first quarter.
The report emphasises that 2021/22 continues to be an extremely challenging time for the council, with Covid-19 impacting on income, expenditure, and in particular the amount of business rates and council tax being collected.
The council is currently forecasting to exceed its budget by £8.3m. (2.76%) However there remains a large degree of financial uncertainty and if the local economic recovery picks up, the council could start to move towards financial balance during the latter part of the financial year.
Cllr Gary Suttle, Dorset Council’s Portfolio Holder for finance, commercial and capital strategy, said:
“2021/22 is the third budget for Dorset Council. It was set against a backdrop of extreme cost, activity pressures and volatility due to the pandemic and with only a single-year financial settlement from Government so it is unsurprising that, despite the council’s efforts to reduce its spend, we are seeing these budget pressures.
“The significant financial burden placed on Dorset Council to deliver services against a backdrop of increasing need and considerably less income during the pandemic continues to be felt in all areas of the business. I’d like to reassure residents that we have robust programmes of work and strategies in place to reduce the shortfall.”
The council has a legal duty to provide educational support for children with special needs and disabilities and the level of need continues to rise. In addition, there are more people than previously forecast entering council-funded care because of the ‘accelerated discharge from hospital’ programme due to the pressures on the NHS from COVID.
The council continues to lobby central Government for fairer funding. Dorset Council has not had meaningful, long-term, financial planning information from Government since its establishment in April 2019.
