Council warns of tax rise and service cuts over £38m budget gap

Summarised from 2 outlets · Updated 9 Oct, 15:31 · Archive

Bournemouth, Christchurch and Poole Council is forecasting a £38 million budget gap for 2027/28 and warns that service cuts are likely.

BCP Council is forecasting a £38 million shortfall in its budget for 2027/28, alongside pressures of more than £32 million this year if no action is taken. The gap is driven by rising demand for children's and adults' social care and the rising cost of delivering services, with government funding expected to fall by £15 million in real terms by 2028/29.

The council is likely to ask the government for exceptional financial support, which could include an above-inflation council tax rise above the standard 4.99 per cent threshold. Mike Cox, the council's cabinet member for finance, said it was dealing with a financial challenge 'on a scale it has not experienced before' and stressed that no decisions had been made on cutting services, but such cuts were 'highly likely' given the scale of the challenge.

Matthew Filmer, the council's interim director of finance, said the overspend was driven by pressures on vulnerable people in society. 'If people come into care, we have to look after them, it's our statutory obligation to do so,' he said. The council is also urging the government to cover the final 10 per cent of its special educational needs and disabilities debt, after ministers agreed to fund the remaining 90 per cent earlier this week.

How it is being reported

• Cuts 'highly likely' as council faces £38m gapThe council says it is likely to ask for exceptional financial support from the government.BBC Dorset · 9 Oct, 14:38
• BCP warns of tax hike, service cuts and asset sales over £38m budget gapResidents are “highly likely” to see cuts to services and council properties sold off, alongside a potential above-inflation council tax rise to help tackle an expected £38million gap in next year’s budget.Bournemouth Echo · 9 Oct, 13:57

In this story: Bournemouth, Christchurch and Poole Council · Mike Cox · Matthew Filmer · Department for Education

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