Dorset Council is facing a £29 million gap in its budget for the next financial year.

The council says setting the budget for 2023-24 will be a 'challenging' process as it prepares to consider a report at Cabinet on October 4.

It claims the three main variables affecting finances are inflation - with 'costs increasing at an unprecedented rate, affecting many services the council provides.' For example, it says, rising fuel costs are impacting on transport services, while capital costs for road works and new buildings are affected by infrastructure price rises - employee pay awards - the nationally agreed pay offer for next year alone is anticipated to cost the council an extra £6 million - and growing demand for adult social care due to the ageing population and new Government reforms coming in over the next year. will cost significant sums to implement.

The report states that Dorset Council faces a 'high level of uncertainty' over its budget position at this point in the year. It is not known what will happen with inflation over the coming months so budget setting has to be based on sensible forecasts, while the Government’s financial settlement to councils will not be announced until the end of the year.

All councils are required by law to set a balanced budget with expenditure balanced by income, and the council says work will take place over the coming months to close the gap.

Cllr Gary Suttle, portfolio holder for finance, commercial and capital strategy, said: “Once again, we face a challenging budget situation, as do nearly all councils across the country. Dorset Council continues to be under-funded by Government, but this is now exacerbated by inflation. As councillors, we must work hard over the coming months to set a balanced budget. This may require some difficult decisions.

“I’m acutely aware this comes at a time when people are increasingly struggling to make ends meet. Support for people who need it most will be prioritised and we’re continuing to press our MPs and the new Government for a better deal for our taxpayers.”