Council tax could go up by £1.62 a week for a Band D property as Dorset Council's budget proposals go to cabinet for approval.

Dorset Council is proposing to increase its budget for financial year 2021-22 to just under £313m - from £304m the year before. This budget funds all services the council provides to residents, communities and businesses throughout the year.

The increase in budget is needed to fund the cost of responding to the coronavirus pandemic, the growing need for social care within the Dorset population and inflation.

The council proposes to increase general council tax next year by just under two per cent and to levy the adult social care precept of just under three per cent, in line with the Government's Spending Review. This would equate to £1.62 extra a week for a Band D property.

The budget proposals also include no pay rises for council staff. The chancellor's spending review last year announced that public sector pay would be paused. While central government has no formal role in deciding local government pay, it is likely that local government pay will follow suit.

The council is required by law to set a balanced budget - expenditure must be balanced by income.

The council's Covid-19 response has resulted in additional expenditure for things like support for vulnerable residents, PPE, Covid-secure arrangements and lost income for car parking, leisure services, business rates and council tax.

Following extensive lobbying by Dorset councillors and MPs, the Government has provided significant funding for these additional costs and loss of income, though not enough to cover the full impact. There is a high level of uncertainty about future cost pressures due to the ongoing coronavirus pandemic and also uncertainty resulting from the UK's exit from the EU.

Dorset Council also faces significant budget pressures from the growing need for social care with an aging population.

These budget proposals for 2021-22 were discussed at two council scrutiny committees in December. Following consideration at Cabinet on Tuesday, January 19, the budget proposals will go to the full council meeting in February for final approval by all Dorset councillors.

Cllr Gary Suttle, portfolio holder for finance, commercial and capital strategy, said: "It has been particularly challenging developing the budget for the next financial year, 2021-22, due to the high level of uncertainty caused by the Covid pandemic. Covid has had a massive impact on our communities and our budget this year and this is likely to continue over the coming months.

"We have developed proposals which will deliver a balanced budget. But it has not been easy and it is with a heavy heart that we have had to include proposals for a council tax increase.

"We understand that many residents and local businesses have been hit financially by the pandemic and there will be support available for the hardest hit.

"The budget assumption of a pay freeze for staff is also made with a heavy heart when we are keenly aware how hard staff have worked for many months.

"These are tough choices, but we have to find ways to fund the support for communities through the pandemic and the ever-growing need among our residents for social care services.

"We continue to lobby the Government for further funding and we will endeavour to protect the vital council services on which so many residents rely."

The cabinet meeting on January 19 will also consider the Quarter 3 financial management report for the current financial year at £18.6m. This will be covered from the council's reserves. The overspend has largely resulted from additional expenditure and loss of income caused by the coronavirus pandemic.

In quarter 1, Dorset Council was forecasting an overspend of £43m for the financial year. The council has managed to reduce this financial impact over the course of the year by accelerating some savings programme, restricting some recruitment, increasing income over the summer when Covid restrictions were relaxed, and lobbying Government and securing more funding.

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