DORSET County Council has agreed to make £31million worth of savings despite a last-ditch attempt to save services.

The council approved the budget for the coming financial year which will see huge cuts to public services after leader Angus Campbell declared councillors were living in ‘extraordinary’ times.

The savings in the coming year are a ‘front-loaded’ approach to cuts which will see a total of £55million saved over three years in response to the coalition government’s austerity measures to address the national deficit.

It is expected 500 jobs will be lost at the county council.

Budget decisions were reached after a marathon meeting yesterday which saw passionate speeches from all sides and which began with protests outside County Hall.

The Tory-led authority staved off an attempt by the Liberal Democrat group to find savings elsewhere in the budget instead of hitting frontline services such as day centres, youth services, lollipop patrols and libraries.

The Lib-Dems calculated that £4.2million worth of savings could be found in the budget including taking money from the balances, hacking the publicity budget and reducing the amount the council spends on consultants, agency and temporary staff.

The group also failed to get the council to review controversial capital schemes such as the Purbeck schools shake-up and the new Dorchester Library.

Lib-Dem leader Janet Dover accused the council of ‘wasting’ millions over the past three years on controversial projects such as the DES computer system. But Lib-Dem amendments were defeated by the Conservative majority which agreed that the proposed budget was the right one for the curent climate.

Leader Angus Campbell said reduction in formula and specific government grants combined amounted to £18million or 23 per cent in 2011-12.

This along with additional budget pressures will require savings of £31million in the coming year in order to balance the budget.

Around two-thirds of the savings will be found through efficiencies including the effects of a two-year pay freeze for all staff and changes to terms and conditions.

Coun Campbell said ‘sadly’ there had to be savings from some frontline services, adding: “This programme of savings will be immensely challenging but we intend to work with our partners and the voluntary sector to make efficiencies and maintain services.”

In the current financial climate, discussing sharing the cost of services with communities should not be thought of as unusual, Coun Campbell said.

He added: “We are living in extraordinary times with huge savings demanded of us and working closer with our communities for the benefit of all is not only necessary but desirable for the future vision of Dorset.”

The net budget requirement for the coming year is £273.3m. The budget includes £4million for a range of pressures, including the Weymouth Olympic Transport Package. The council will be making no increase in council tax for the coming year.

Councillors heard that the council will be investing £190million in buildings and infrastructure over the next three years including the Weymouth Relief Road and the Purbeck Schools Review.