Keep calm and carry on – that’s the message from Dorset Council in response to a forecast £7.1 million overspend on directly controlled budgets and up to £5.5 million for education.

But, if needed, the council will dip into its £28 million reserve fund to ease the pressure while it works out what to do in the long-term.

Deputy council leader Peter Wharf says the authority would be best not to rush into knee-jerk reactions to the overspend but to take its time, work out what the best course of action is and then put plans in place.

Cabinet members heard that much of the spending is down to social care – especially for children and an every-growing number of pupils who have a Education, Health and Care Plan (EHCP).

Education spokesman Andrew Parry says these have risen by 67 per cent since 2013, while at the same time the county has only received a seven per cent increase in funding from the Government. Just to start work on a plan costs £2,500 per pupil.

He said there had not only been an increase in the number of pupils which the council was obliged, and wanted to help, but also a rise in the complexity and therefore the cost, of EHCP plans.

Cllr Parry said that the council had written to the Secretary of State about the issue and a meeting was likely to be held in September.

Also costing more is support for children with Special Educational Needs and Disabilities (SEND), while the number of children taken into care to keep them safe from immediate risk of harm has also increased and now stands at more than 430, higher than comparable councils. Some residential care placements for highly vulnerable children or those who might present a danger to themselves or to others cost between £3,000 and £8,250 per week, almost all of these are out of the county, some of them hundreds of miles away.

Also costing more than anticipated is social care support for vulnerable and frail older people and people with disabilities.

Funds in reserve

Cllr Wharf told councillors he was still hopeful of making savings of £10 million a year by reducing duplicate posts and some managerial positions at the council but while those job losses were being agreed a review of the 2019-20 budget was also underway.

He said the council had two choices to deal with the projected end of year shortfall – to over-react and take short-term decisions or to take a measured response, stand back and monitor what was happening and take action when it was clearly understood what the priorities should be.

“Meanwhile we can use some of our reserves, to tide us over, if we need to, while we solve the systemic issues,” he said.

Cabinet members were told that the authority has more than £28 million in reserve funds, almost double the £14.5 million thought prudent, giving it some room for manoeuvre.

Other action being taken which may help is the disposal of assets, although few decisions are expected until January about what land and properties might be sold as a review is currently still being worked on with an interim report expected towards the end of September.