Dorset Council goes £10m over budget as inflation hits

Finance portfolio holder Gary Suttle warned its £8.6m contingency fund might not see it through the financial year

Local authority finances are being hit by "numerous" issues caused by inflation, with spending already over budget, Dorset councillors have heard.

A meeting of Dorset Council's cabinet was told its spending was already £10.25m adrift - after just three months of the financial year.

A staff pay award is yet to be factored in.

Finance portfolio holder Gary Suttle warned its £8.6m contingency fund might not see it through the financial year.

He told cabinet members the £10.25m figure represented "a significant difference" between what was planned for and what is happening, with areas such as transport causing particular concern.

He said finances were being "hit in all directions" by inflation.

"It's not one issue or problem, it's numerous," he said, although he added that he would wait until the autumn before deciding if a revised budget was necessary.

He also warned that savings targets, of more than £5m, were looking doubtful.

Among the issues being faced was the level of council tax being collected with some people struggling to pay, although the business rate situation had improved, the meeting was told.

A previous meeting heard unpaid council tax, described as "historic arrears", amounted to £24.8m, with £7.3m owing in business rates.

On the plus side, savings from the merging of Dorset, West Dorset and East Dorset councils as well as efficiency would deliver £31m in savings over the five years up to 2026, councillors heard.