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September 2020 September 2020
other commercial services, and lower than anticipated income from business
rates and council tax.
COVID-19 has had a very significant impact on Dorset Council. The Government
urged councils across the country to do “whatever it takes” in response to the
pandemic and Dorset Council acted appropriately, supporting residents,
communities and businesses through the crisis.
Dorset Council has so far received two rounds of funding totaling £21m from
Government to support the council’s budget pressures as a result of COVID-19.
The Government recently announced a third round of £500m funding for local
government in England, but Dorset Council has not yet received the full detail of
its share of this financial support. It will consist of grant funding (Dorset Council will
receive £2.7m), an income support scheme (details to be confirmed), and
support for collection funds. However, it is highly unlikely that this will fully address
the current year’s budget gap which is now forecast at £43.1m.
Unless additional Government funding becomes available, Dorset Council will
have to manage this forecast budget gap using its reserves. The General Fund
reserve of £28m combined with other previously earmarked reserves are sufficient
to enable the council to continue to operate throughout 2020/21.
While Dorset Council has sufficient reserves to survive this financial year, our
overall financial position as a result of COVID-19 is of real concern. It will be
unsustainable to take this continued level of expenditure into the next financial
year, 2021-22. However, we will continue to explain the financial reality of the
situation to government and our local MPs and therby seek additional funding to
reduce the impact.
We will also need to enter into a really challenging budget setting round for next
year and future years. This will identify tactical savings and will involve developing
a transformation programme which enables the
council to meet the needs of Dorset’s residents
within the funding available.
Ironman
The following statement was recently issued
regarding the IRONMAN 70.3 Weymouth event: -
With the health and safety of our community
being an utmost priority, and after further
discussions with and direction from Weymouth
Town Council and Dorset Council in relation to
the COVID-19 pandemic, we regret to confirm
that the IRONMAN 70.3 Weymouth triathlon
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