Dorset Council has £36m still to find for next year's budget, up from £17.6m in February. Council tax is assumed to rise by the most allowed.
Dorset Council has £36 million still to find to balance its budget for 2027/28. That is double the £17.6 million gap it forecast in February.
The figures are in a budget strategy report that Cabinet noted on Tuesday 10 November. The report says the gap “equates to £95 per head” of Dorset’s population. It also forecasts that the gap keeps growing if nothing changes: £55.7 million by 2028/29 and £77.6 million by 2029/30.
Where the extra cost comes from
Services need £56.8 million more next year, the report says. Savings found so far come to £9.67 million. The two biggest rises are in care:
| Service | Rise in budget | Proposed 2027/28 budget |
|---|---|---|
| Adult social care | £18.4m (11%) | £192.5m |
| Children’s services | £15.4m (15%) | £120.5m |
| Economy and environment | £8.9m (9%) | £113.3m |
The report puts the adult care rise down to more people being supported since October 2025, in home care, extra care, supported living and care homes. In children’s services, it says the main driver is the number of children in care.
The gap also grew because of:
- £10.6 million in extra service pressures, net of savings
- £5.1 million in interest, capital and pay increments
- £2.7 million in funding changes
What it means for council tax
The council’s planning assumption is that it will raise council tax by the most it is allowed without a referendum: just under 3%, plus just under 2% for adult social care. The report says that works out at about £2.11 a week more for a band D home, on the Dorset Council part of the bill.
At band D, that part is £2,205.90 this year, out of a total of £2,625.43 before any town or parish charge. Our Dorset council tax bands page has the full bill for every band and parish.
The report says 93% of the rise in the council’s core spending power this year came from council tax rather than new government money.
Reserves will not close it
The report says the council would need £36 million of savings to avoid drawing on reserves next year. Leaning on reserves at that level “is not sustainable given the limited reserves available”.
The council expects around £161 million in total reserves by 31 March 2027. It is already forecasting an £8 million overspend this year, to be met from reserves.
The report also points to the deficit on schools funding for children with special educational needs. It expects that deficit to return to about £150 million by March 2028, despite a £145 million government grant, as we reported last week.
What happens next
Cabinet agreed to keep lobbying Dorset’s MPs for fairer funding and asked Cabinet members to keep looking for savings with officers. The timetable is:
- 26 and 27 January 2027: the two scrutiny committees look at the budget
- 2 February 2027: the budget goes to Cabinet
- 11 February 2027: full council sets the budget and council tax
What it means for you
- Expect a council tax rise in April. The plan assumes the maximum allowed, but the figure is not set until 11 February.
- Services may change. The council’s finance chief rates the financial risk as high. The report warns that a balanced budget “will require reprioritisation of service delivery”.
- To have a say, contact your Dorset councillor before the January scrutiny meetings.
Have your say