Issue - meetings

Medium Term Financial Plan and Budget Strategy report

 

 

Meeting: 29/01/2026 - Cabinet (Item 27)

27 Budget and Medium-Term Financial Plan Strategy Report (MTFP) pdf icon PDF 1 MB

To consider a report of the Cabinet Member for Finance and Capital Strategy.

Additional documents:

Minutes:

The Cabinet Member for Finance & Capital Strategy presented the Budget and Medium-Term Financial Plan Strategy report for recommendation to Full Council.

 

In setting out the report and its recommendations, the Cabinet Member for Finance and Capital Strategy gave a wider overview of the context influencing the Council’s financial position. He highlighted that Dorset, as a predominantly rural county with a significantly aging population, continued to face challenges which were not fully reflected in national funding allocations. Also, the Council received comparatively less transport support than neighbouring authorities, and the area’s seasonal economy contributed to younger residents leaving the county in search of stable employment.

 

The Cabinet Member continued that the introduction of a three‑year financial settlement was welcomed; however, in real terms Dorset would see a reduction of £6 million over that period. He explained that business rates have fallen by 15%, and this financial backdrop contributed to the need for a 4.99% increase in council tax, which, while disappointing, was presented as a direct consequence of the national approach to funding distribution and its impact on Dorset.

 

The Cabinet Member acknowledged the contributions of the budget cafés, and the recommendations and comments from the Scrutiny Committees; and these along with the responses were set out in Appendix 9 to the report (circulated as a supplement).

 

Non-Cabinet members asked several questions around Adult Social Care and Children Services.  There was also frustration expressed regarding the government’s settlement, and it was hoped that the Council would continue to apply pressure on central government for improved funding.

 

Members welcomed the introduction of the budget simulator and expressed a hope that it would be utilised again next year.

 

Before the recommendations were put to the vote, individual Cabinet members were given an opportunity to draw attention to how the budget specifically impacted their portfolio areas, and the steps being taken to manage financial pressures through efficiencies while continuing to support vulnerable residents and essential infrastructure.

 

Cllr S Clifford proposed the recommendations 1 to 13 of the report and these were seconded by Cllr S Robinson.

 

Recommendation to Full Council 

 

1.             That the revenue budget summarised in Appendix 1 of the report to Cabinet of 29 January 2026, be agreed.

 

2.             That the increase in general Council Tax of 2.9985% and 1.9919% in the Social Care Precept, providing a Band D Council Tax figure for Dorset Council of £2,205.90; an overall increase of 4.9904%, be agreed and that the Council Tax resolution in Appendix 2 be agreed.

 

3.             That the Council Tax base of 163,765.1 and Band D equivalents (188,374 households in total) agreed by the Section 151 Officer earlier in this budget setting process, be noted.

 

4.             That the continuation of the unchanged scheme of Local Council Tax Support, and the revised income tables following the Department for Work and Pensions (DWP) uplift of benefits by 3.8%, be noted.

 

5.             That the Capital Strategy set out in Appendix 7, be agreed.

 

6.             That the “standing items” included with the Capital Programme as  ...  view the full minutes text for item 27

Meeting: 21/01/2026 - People and Health Scrutiny Committee (Item 54)

54 Medium Term Financial Plan and Budget Strategy report pdf icon PDF 110 KB

To consider a report by the Corporate Director for Finance and Commercial (Section 151 Officer).

 

Additional documents:

Minutes:

The Corporate Director for Finance and Commercial (Section 151 Officer) introduced the Budget and Medium-Term Financial Plan (MTFP). The proposed net revenue budget for 2026/27 was £482.6m. The underlying cost pressure was approximately £37m, the pressures in the proposed budget were addressed through a range of efficiencies, savings, grants and income. The proposed budget presented a balanced budget to the council.

 

The Committee discussed the report and asked questions of the Section 151 Officer, Cabinet Members, and relevant directors. Non-committee members were also given the opportunity to ask questions. Each of the appendices relevant to the committee’s remit were discussed in-turn, following an introduction from the senior officer responsible for the service.

 

 

Appendix 1d – Adults and Housing

 

The demand in adult social care was predicted to continue rising, although it was not expected to increase above the growth included in the budget. Pressures on the wider system could create pressure on the budget. Savings were to be achieved during the year.

 

The following points were raised during discussion on the Adults and Housing budget:

 

·         Whether the FutureCare savings target was realistic. The Executive Director for Adults and Housing was very confident for that these savings would be made.

·         A 3% vacancy factor was expected to be built into the budget. Recruitment for social workers was a challenge but vacancies for these posts were not deliberately held.

·         The unfunded staffing posts pressure in housing were being extended into this financial year as they were on a 2-year basis but were needed to continue investment and transformation in housing.

·         With regards to the council’s transport offer and making savings, the Executive Director advised the council was looking at more cost-efficient ways of funding this, such as using more direct payments.

 

 

Appendix 1e – Children’s Services

 

There was a 5.7% increase in the Children’s Services budget with £3.5m of pressures from pay increases and inflation. The largest pressure was the children in care placement budget. The budget included a £1.5m investment into fostering and kinship care, which was the least expensive option for children in care.

 

The following points were raised during the Children’s Services budget discussion:

 

·         There was a concern from the committee about the council’s High Needs Block deficit. The Section 151 Officer advised this was a national issue and the government planned to introduce a SEND white paper which would set out policy reform options. The council was managing SEND well and there may be additional funding in the final settlement.

·         A specific timeline was not attached to the introduction of AI. Additional capacity from remodelling the service, along with using AI to support staff, would mean the council does not need to rely on agency staff. The Transformation Management Office were reviewing the options for the implementation of AI.

 

 

Appendix 1f – Birth to Settled Adulthood

 

There had been significant growth in the budget for Birth to Settled Adulthood to reflect the service need. The service should help prevent growth in need and supporting children to stay with  ...  view the full minutes text for item 54