£8million council overspend "manageable"
Local authority will hear details of why budgets are being blown
AN £8.1million overspend this year is being forecast by Dorset Council, with rising care costs and delayed savings putting pressure on its budget.
A report due before the council’s Cabinet says the authority is predicting a net revenue overspend of £8.136million — equal to 1.7 per cent of its £466million budget.
Officers say the position remains manageable, but warn that spending controls will need to be maintained and reserves may have to be used if the position does not improve.
The biggest pressures are in Children’s Services and Adult Social Care, which are both forecasting a £3million overspend – both areas which are demand led and have frequently been overspent in the past.
The report also identifies that its transformation programme has failed to hit its target – with a £4million shortfall on the Our Future Council programme, with some savings now expected to be delivered in future years rather than during 2026/27.
Costs linked to vulnerable children remain a major concern. The report says there were 441 children in care at the end of July, with 56 in external residential placements while average external residential placement costs have risen to £6,870 per week — about £360,000 per child per year — a 72 per cent increase since 2020.
Adult Social Care is also facing higher demand and increased costs. The budget had assumed support for 4,415 people at an average weekly cost of £887, but by July the council was supporting 4,542 people at an average of £930 per week.
Other areas of pressure include planning services, where a forecast £829,000 overspend is mainly linked to planning application income being around £300,000 below budget in the first four months of the year as the economy overall slows down.
SEND transport expenditure is forecast to reach almost £22.5million in 2026/27, up from £20.2million last year, while waste and recycling budgets are also under pressure because of lower recycled material values, lower-than-budgeted waste volumes and the cost of absorbing a new Household Recycling Centre contract.
The council’s Cabinet is being asked to approve two new capital programme additions: £2.289million for Wimborne Community Sports Hub and £8.365million for phase five of the Lyme Regis Environmental Improvement Scheme at The Cobb.