Agenda item

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

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 set out in Appendix 3 to be report, be agreed.

 

7.             That the introduction of three formal gateways for capital projects: (i) Business case approval, (ii) Budget allocation, and (iii) Procurement approval by Cabinet or delegated authority, set out in the capital section of the report to cabinet be agreed.

 

8.             That the Treasury Management Strategy set out in Appendix 8 be agreed.

 

9.             That the assumptions used to develop the Budget Strategy and Medium-Term Financial Plan (MTFP), as set out throughout the report to Cabinet, be noted.

 

10.          That the recommended balances on earmarked reserves and on general funds, including the minimum level of the general fund, be agreed.

 

11.          That the responses to the recommendations and comments made as part of the budget scrutiny process, as set out in Appendix 9, be agreed.

 

12.          That the recommendations 2.1.1 and 2.2.2 from 3 December 2025 Harbour Advisory Committee meeting regarding fees and charges, budget and asset management plans, as set out at Appendix 6, be agreed.

 

13.          That the fees and charges for 2026/27, as set out in Appendix 10, be agreed.

 

Reason for the recommendation

 

In accordance with its statutory duties, the Council was required each year to set a balanced revenue budget, including the determination of the Council Tax Level. A balanced budget ensures that all planned expenditure was met from the councils regular and sustainable income, rather than from one-off or short-term sources of funding.

 

The council must also approve a Capital Strategy, a capital programme and budget, and a treasury management strategy, all of which were presented within the report.