Dorset Council delivers first ever underspend as finances improve

Dorset Council has delivered its first ever budget underspend since becoming a unitary authority, marking a major step forward in managing its finances with tighter control over spending. 

A report going to Cabinet on 23 June shows the council ended the 2025/26 financial year broadly on budget, with a very small underspend of £169,000 from a total budget of £417 million. This means the council spent slightly less than planned overall – the first time this has happened since the council was formed in 2019.  

The improved position has been achieved through tighter financial controls, strong leadership and the hard work of officers across the organisation. It follows a year of focussed action to address spending pressures and strengthen how budgets are managed. 

For residents, this means the council is now on a firmer footing to protect the everyday services people rely on – including care for vulnerable residents, maintaining roads, waste collection and local facilities. 

The rating of the council’s overall financial risk has reduced from high to medium, and reserves have strengthened, giving more resilience to deal with future uncertainty. 

At the same time, a separate review of the council’s capital programme – its long-term investment in infrastructure and assets – shows a clearer and more deliverable plan for Dorset.  

The programme has been “right-sized” so it reflects what the council can realistically deliver each year, removing stalled and inactive projects and focusing on schemes that are ready to go.   

This includes investment across Dorset, with projects in places such as Wimborne, Weymouth, Bridport, Blandford, Swanage and Shaftesbury. Planned works include improvements to roads, coastal defences, school facilities, transport links, and community buildings.   

Cllr. Simon Clifford, Dorset Council’s Cabinet Member for Finance & Capital Strategy, said: 

“After a very challenging period, we are getting a grip of the council’s finances – and this year’s underspend is a clear sign of progress. 

“It hasn’t happened by chance. We’ve put proper controls in place, taken tough decisions and focused on living within our means. I’m proud of the work officers and members have done together to turn this around. 

“People rightly expect us to manage public money well. This is about rebuilding trust and showing that we are taking our responsibilities seriously. 

“But we are not complacent. There are still real pressures in areas like social care, and councils across the country are facing rising costs. Global factors, including inflation and instability, continue to affect prices. 

“What we have now is a stronger foundation. We’ve set a realistic capital programme, we’re planning ahead with a three-year budget, and we will keep that same discipline and grip going forward.” 

The council will now build on this progress by developing a new three-year budget plan, continuing tight financial controls, and prioritising investment that delivers real benefits for Dorset’s communities.