Dorset Council taking action as demand for care services continues to grow

Every day Dorset Council supports thousands of adults and children across Dorset who rely on care and support services. As more people need help and the cost of providing that support continues to rise, the council is facing increased pressure on its budget.

A report going to Cabinet next month shows the council is currently forecasting an £8.1 million overspend for 2026/27. This represents 1.7% of the council's £466 million budget.

The budget is set on anticipated demand, but various factors change that. The council is taking dynamic action to reduce the forecast overspend and bring spending back in line with budget by the end of the financial year.

The biggest pressures are in services that support vulnerable adults and children.

Adult Social Care is currently supporting 4,542 people across Dorset – 121 more than budgeted for. Children's Services is also continuing to see rising demand and higher costs for specialist placements for children with complex needs. These are challenges being felt by councils across the country.

The forecast at this stage of the year provides an early indication of financial pressures and helps the council act where needed. Spending is being closely managed across the organisation, with work continuing to reduce costs, improve efficiencies and maintain services for residents.

The report also highlights progress from changes to the way the council works. Some planned savings have already been achieved, through, for example, vacancy management processes and maximising efficiencies across council directorates, with further savings expected later in the year as work continues across the organisation.

Cllr Simon Clifford, Cabinet Member for Finance and Capital Strategy, said it was not unusual for Dorset Council to report an overspend at this point in the financial year.

This time last year we were also projecting a significant overspend. This projection helped us to identify areas where we needed to more closely manage spending and reduce costs.

By the end of the year, we delivered a modest underspend. Like all good organisations, we have a track record of using financial projections to understand our spending and then taking action through the year to ensure that we deliver within budget.

Cllr Clifford said: "Every day our services support thousands of people across Dorset. As more people need help and the cost of specialist care continues to rise, we're seeing increasing pressure on council budgets.

"We're taking action now to reduce the forecast overspend and bring spending back into line with budget.

"Our focus is simple: protecting the services residents rely on while making sure every pound of public money is spent wisely.

"Changes to the way we work are already helping us reduce costs and improve services, with more benefits expected as this work continues.

"We're determined to manage these pressures responsibly while continuing to support the people who depend on our services."

The report will be considered by Cabinet on 8 September. Papers can be found - (Public Pack)Agenda Document for Cabinet, 08/09/2026 18:30

* The forecast is subject to a “medium” risk assessment by the council’s finance director.