COUNCIL tax bills in Dorset are rising in a bid to tackle an increase in costs for providing services of more than £83 million – with a warning jobs could go at the authority as money continues to be tight.

On Tuesday (February 11), the full Dorset Council approved its 2025/26 budget, which included a 5% increase in its share of council tax – a 3% rise, plus an extra 2% for adult social care costs.

The total budget reaches £417.2m for the year, and councils are required by law to balance the books.

A council spokesperson said: “Dorset Council faces rising pressures on services, for example with the growing number of older people in Dorset who need social care support.

“The additional cost of service delivery next financial year is forecast to be £83.4 million.

“Due to the national funding formula set by Government for councils, Dorset is heavily dependent on council tax for funding of the essential services it provides.

“Council tax will increase next year by just under 5% (3% plus 2% for the adult social care precept). The increase is equivalent to £1.91 extra per week for a Band D property.

“As a means of managing costs into the future, the council has developed a transformation plan to streamline council operations including increased use of technology, better customer service, closer working with communities, and lower operating costs.

“Over the coming years, these changes will result in a slimmer council with fewer staff.”

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After the meeting, Cllr Simon Clifford, cabinet member for finance and capital strategy, said: “We have developed this balanced budget in a national context of significant financial challenge. We want to continue to protect essential frontline council services, but still have difficult decisions to make over the coming years.

“It’s a tough financial climate with inflation, higher National Insurance costs, and the ever-increasing need for social care services, particularly with our growing older population in Dorset.

“The funding arrangements set out by government in the Local Government Funding Settlement means Dorset Council relies heavily on the revenue generated by council tax and retained business rates to raise the vital funds needed to deliver services to the residents of Dorset.

“We are lobbying Government for fairer funding for Dorset so that we can reduce the burden on local taxpayers in future. We will not be looking to increase council tax levels above government-set limits for the five-year duration of this administration.”

Among plans in the budget is the revised council tax reduction scheme, which came into effect on April 1 last year, allowing eligible working-age households to claim up to 100% of their council tax bill.

Around £10m is set to be saved through staffing, with the budget report highlighting how a “£10m recurrent revenue saving will be delivered through reducing spend on employees by £9m and reducing third party spend by £1m”.

Any job losses would be spread across departments, it added.

Meanwhile, parking charges at council-owned sites are also set to increase, with evening charges – at a flat rate of £2.50 between 6pm and 10pm – introduced.

MP Simon Hoare is confused by the introduction of evening car parking fees

The evening charges plan provoked a response from MP Simon Hoare (Conservative, North Dorset), who said after the meeting: “I fail to see how, financially, this will stack up given the costs needed to impose and enforce it.

“It will be a new cost for residents living in towns such as Shaftesbury, Sturminster Newton and Blandford, where many of the roads were never intended for massed car ownership.

“Our arts and cultural sector together with pubs and restaurants depend upon evening trade. Our volunteer and community/sporting groups meet in the evening too. All of these will be hit adversely as a result of local Lib Dems using them as a cash cow.

“With no North Dorset Lib Dems serving in cabinet or key positions on (Dorset) Council it should come, disappointingly, as no surprise that they did not speak up for North Dorset residents to the council leadership.”