DORSET Council's current financial position has been described as "challenging" with a predicted £7.7million overspend by the end of the financial year.

Lib Dem council leader Nick Ireland admits the authority is not where it wants to be with the budget – but says the situation is not insurmountable.

He revealed that savings from changes in the way the council works have been slower than hoped for with talks with unions over job losses ongoing and the staff consultation still being considered.

"We are still moving forward – just not as fast as we had hoped," he told the September Cabinet meeting.

The council leader said that much of the extra demand had been in children's services (£4million over budget) and adult social care, both areas which are demand led and unpredictable with any certainty.

Cllr Ireland said that despite the gloomy news children's services are on budget to deliver target savings and the Place directorate is predicting a small underspend, with a small underspend also likely in the transport budget.

"We are not sitting back – there will be tighter financial controls, especially around discretionary spending; re-profiling transformation effort and being transparent," he told the meeting.

He said that local councils across the UK remained under immense pressure with inflation, rising demand and years of under-funding, with news that many are now facing £30million overspends.

He said that was not the situation in Dorset, which still has healthy financial reserves to fall back on, if needed.

"While the financial outlook is challenging, we are taking decisive action: strengthening controls, focused transformation (internal changes to ways of working), and on-going monitoring will be key to negotiating to the end of the year and a sustainable budget for 26-27," he said.