REACTION is split on the government settlement for Dorset with council chiefs expressing serious concerns over the implications for funding and the county's police boss saying it is a fair deal for the force.

Dorset's Police and Crime Commissioner has welcomed news that the force’s budget will be largely protected by the Home Office.

However Dorset County Council has expressed concern it will be disproportionately hit by government spending cuts announced as part of a four-year settlement.

The settlement, announced at the end of last week, will transform the relationship between central and local government, with town halls being financed through locally-raised funds – council tax and business rates.

Among other details, an extra £3.5 billion will be available across England for adult social care.

PCC Martyn Underhill said Dorset Police would see a cash reduction of only 0.6 per cent, compared with the 3.5 per cent expected before the November Comprehensive Spending Review.

He said: “On the face of it, this is a fair settlement.

“As the Chancellor announced, the Government now expect me to raise the precept by 2 per cent next year, to maintain the same funding as this year.

“I shall now ask the people of Dorset for their view, in a consultation which we will launch in early January.”

Cllr Robert Gould , leader of Dorset County Council, said the authority had “serious concerns” over the details of the settlement.

He said: “We need to do further work to fully understand the details but it would appear that the government has fundamentally changed the method of allocating grant and this could have a significant detrimental effect on our funding, particularly over the next couple of years.

“This will come on top of the demographic and demand pressures which the council is facing as well as new cost pressures such as the National Living Wage.”

The government has said that total funding for councils will fall by 2.8 per cent in 2016/17, before rising again so that by 2019/20 it is “virtually unchanged”.