CUTS to services and council tax hikes are almost inevitable as Borough of Poole seeks to save an additional £12million over the next three years

A dire picture of the state of council finances has been laid out in a report going before cabinet tonight, setting out the devastating effects of government funding cuts.

It reveals that on top of a £25million per year cut over the last six years to the council’s core funding, the government reductions will now grow to an additional £11.3m per year by 2020.

As chief finance officer Adam Richens sets out in his report this total annual reduction to Poole’s core government funding of £36m between 2011 and 2020 is: “The equivalent of £530 a year for every household within the borough.”

He adds: “Not only are our Government resources clearly being shrunk massively but demand and the cost for our services, particularly for vulnerable children, adults and older people, continues to grow.”

The council must now find £12million as yet unidentified savings on top of the millions of pounds of savings already budgeted for.

The report adds that the “scale of savings required will inevitably mean” both changes to services and some service reductions.

And, through not agreed at this stage, the council is working with a “planning assumption” of increasing council tax by the maximum 3.99 per cent each year for the next three years.

Speaking to the Echo, he added: "Some difficult decisions will have to be made and we will make every effort to deliver the council’s priorities and protect local services. However, the scale of savings required will inevitably mean changes in the way the council operates and the services it delivers, but we continue to be committed to doing the best for Poole and its residents.”

In a bid to plug the funding gap a raft of options are on the table, including generating more income, redesigning servies, commercialisation of some services, upping fees and charges, cutting or cancelling subsidies and reviewing council pay and employment policies.

Borough of Poole will also move to share back office functions and some services with Bournemouth council and other public sector partners. Possibilities here include seafront services, tourism and events, museum and library services, and health and social care.

Mr Richens added in his report: “Our emphasis is that we must live within our means and to achieve this we will become more entrepreneurial using best business practice and become more efficient in the way decisions are made and services delivered.”

The cabinet will also consider bringing forward a public engagement exercise on the plans to this autumn.