In a Quarter One Financial Management Report going to the Cabinet meeting on 28 July, Dorset Council outlines its latest financial position, including the impact of the COVID-19 response on budgets.
The total cost of the financial impact of COVID-19 to Dorset Council is £60m. This is as a result of additional spending and lost income due to COVID-19:
- Additional expenditure responding to increased demand for social care for adults and children, extra PPE for employees, support for people who were shielding, etc.
- Lost income from suspension of car parking charges, closure of leisure centres and other commercial services, and lower than anticipated income from business rates and council tax.
COVID-19 has had a very significant impact on Dorset Council. The Government urged councils across the country to do “whatever it takes” in response to the pandemic and Dorset Council acted appropriately, supporting residents, communities and businesses through the crisis.
Dorset Council has so far received two rounds of funding totalling £21m from Government to support the council’s budget pressures as a result of COVID-19. The Government recently announced a third round of £500m funding for local government in England, but Dorset Council has not yet received the full detail of its share of this financial support. It will consist of grant funding (Dorset Council will receive £2.7m), an income support scheme (details to be confirmed), and support for collection funds. However, it is highly unlikely that this will fully address the current year’s budget gap which is now forecast at £43.1m.
Unless additional Government funding becomes available, Dorset Council will have to manage this forecast budget gap using its reserves. The General Fund reserve of £28m combined with other previously earmarked reserves are sufficient to enable the council to continue to operate throughout 2020/21.
Cllr Tony Ferrari, the council’s Portfolio Holder for Finance, Commercial and Assets, said:
“While Dorset Council has sufficient reserves to survive this financial year, our overall financial position as a result of COVID-19 is of real concern. It will be unsustainable to take this continued level of expenditure into the next financial year, 2021-22. However, we will continue to explain the financial reality of the situation to government and seek additional funding to reduce the impact.
“We will also need to enter into a really challenging budget setting round for next year and future years. This will identify tactical savings and will involve developing a transformation programme which enables the council to meet the needs of Dorset’s residents within the funding available. There are difficult decisions ahead.”
I am pleased to know that DC is making a real effort to fix Pot Holes, as this will reduce unnecessary expenditure by all road users and save us the funds which are needed elsewhere. Well done.
I hope that the Gov’t will refund in full the extra £9 million spending on combatting Covid-19. It might help to publish this expenditure.
Now, please get onto those who dump rubbish onto roads and into the countryside. Publish their names and shame them as well.
It seems to me that Dorset Council have a substantial amount of untapped wealth in surplus property. Several examples in and around Wimborne. For example the old council office in Furzehill, a very substantial valuable site.
The redundant court in Wimborne and the building on the other side of the road, ex social services possibly. Perhaps the financial people might like to put a monetary value on surplus properties before asking the government and local tax payers for further funds.
Mike Wheadon
Not quite sure where the increased spending on social care has gone. Have not the numbers of elderly and disabled that the council been supporting actually reduced, if the headline figures of deaths both in the community and in residential care, are to be believed? Social service visits have virtually ceased, phone contact may have grown, but mileage reduced. Likewise, with less traffic on the roads will have reduced wear and tear, maintenance on schools and subsidised travel and meals have not been provided, session and locum staff have not been employed , car parks and toilets will not have been attended etc etc…. let us have a full balance sheet for the last almost six months!