BUDGET pressures are growing at County Hall as inflation and rising demand for services take a toll.

Among the pinch points are the need for another £2million for the cost of accommodating children the authority looks after and an additional £220,000  for unaccompanied asylum-seeking children – the county’s quota set by the Government having increased from 47 to 67.

A report to a council meeting next week says that although savings of around £1million have been found in children’s services, expected costs and expenses continue to rise.

Adult services are in a similar position with an overspend more than doubling from £1.84m at the end of the first three months of the financial year to £3.98m at the six-month point.

The department has also managed savings, of £2.9m, with a further £800,000 expected, leaving a shortfall of £300,000 by the end of the financial year, unless demand for services unexpectedly increase.

Housing also has an overspend, of £1.3m, partially caused by a £445,000 increase in bad debts from rent arrears.

The report says that while the use of bed and breakfast short-term accommodation for homeless people has declined slightly there has been an increase in family homelessness – with the cost of rooms rising because of inflation.

It adds that the pressures are likely to get worse as more people come to the council seeking support: “Front door demands are unlikely to reduce in the short term, due to winter pressures on energy bills, inflation, and the pressure on the private rented sector, making lower income households an unattractive option for landlords.”

The council policy to find solutions include acquiring properties it can use and releasing council buildings for use by homeless people – but it also concedes that, in some cases, in might have to offer bigger payments to landlords.

Overspends are also reported in the Place Directorate, of £5.26m, largely caused by inflationary costs for materials and energy and a reduction in car parking income. Planning is £855,000 adrift, some of it caused by being unable to recruit permanent staff and having to use agency workers.

Dorset Travel reports a £2.1m overspend, much of it due to extra costs from external contractors for public and school transport, while Waste services are £1.1m adrift, largely due to increased vehicle running costs.

To add to the council’s problems is the likelihood that it has under-budgeted for staff pay awards, still under negotiation, and will have to use its contingency fund to meet those bills.

The report also warns of the potential for problems in collecting all the council tax owing as many households and businesses struggle with cost of living increases.

Councillors will be told that the year will continue to be challenging with inflationary and demand pressures impacting on its income and expenditure.

“It is vital that the Council remains focused on living within its means, and in particular ensuring that savings and efficiencies continue to be actively sought out and delivered to ensure the 2022/23 budget is brought back into balance,” said executive director in charge of council finances, Aidan Dunn.