SAVINGS of £3m by transforming services at Dorset Council are unlikely to be achieved this year, councillors have been warned.

At the same time income from council tax is down 1.5 per cent on the same time last year and business rates almost 7 per cent down.

Projected figures for the full financial year put the downturn at £4.4m for council tax collection and £2m down on business rates.

The report, by Executive Director of Corporate Development, Aidan Dunn, concludes that the council is doing well in finding savings, despite the extra costs of Covid, but still has a lot of work to do if it is to close the budget gap for this year by the end of March.

“Covid-19 has had a dramatic impact on the Council’s finances with a loss of income and increased expenditure.

"Whilst the announcement of some further funding from Government is very welcome, it is unlikely to translate into a baseline funding increase and we must therefore look to close the budget gap ourselves.”

Mr Dunn says that the £3m hoped for in transformation savings, by making the council more efficient, are unlikely to be realised this year.

Finance brief holder Cllr Gary Suttle told the Cabinet meeting that work would continue to make savings and to improve the council’s overall efficiency in the way it delivers services to residents.

He said the authority would continue to be prepared to invest in schemes which might make savings in the long run: “If we get it right it will impact on all our lives and give everyone a better outcome.

"There is a will to do it,” he said.

Deputy council leader Cllr Peter Wharf said that a lot of progress had been made in transforming the way the new council works, but there was still more work to be done, now with the added imperative of a budget shortfall to overcome.

“But it’s not only about savings – it’s about our culture and our behaviours,” he said.