A five per cent increase in council tax will still leave Dorset Council with reserves depleted and struggling to find further savings – and with no pay increase for staff.

Finance brief holder Cllr Gary Suttle has warned of a tough year ahead and says the risks of being blown off course remain high with uncertainty around how the pandemic will pan out and the effects of Brexit.

He says the council is expected to end the current financial year with an overspend of £18.6million, a figure which would have been worse had it not been for additional government funding and a £10million pay saving brought about by losing jobs as the previous councils were brought together to create the new unitary authority.

He admitted that the proposed inflation busting five per cent increase from April will be a 'bitter pill' for residents to swallow, but says the council had no other choice.

It will mean Dorset is likely to remain among the most expensive council areas in the UK for council tax rates, paying far in excess of many inner London boroughs.

The biggest share of the Dorset Council tax increase will go to adult and children's services with three per cent of the rise being levied for services for older people under government rules.

The increases will give adult services a budget of more than £128m and children's services more than £76m. Reductions of almost eight per cent and five per cent are planned for place and central services.

The council will have an overall revenue budget of just over £312m for the year ahead.

A final decision will be made by the full council next month but with a working majority the Conservatives are certain to get the increase through.

Both Dorset Police and the Wiltshire and Dorset Fire Authority have yet to announce their expected budgets for the coming financial year but it is anticipated that both will push their increases to the maximum of around two per cent.

For many 'average' Dorset households the combined council tax bill will result in payments exceeding £2,000 a year before any town and parish council precepts are added.