Dorset Council Probe Uncovers £13m Overspend and Governance Failures

Dorset Council is facing serious questions after an investigation revealed governance failures and potential illegal activity in its Place, Assets and Regeneration team.

A health and safety compliance programme, initially approved with a £4 million budget in 2023, has escalated to almost £13 million over two years. According to reports from the South West Audit Partnership (SWAP) and the council’s own reviews, the overspend occurred without proper approvals, business cases, or routine financial monitoring.

Procurement and payment concerns

Auditors found contracts had been awarded without competitive tendering, invoices were approved without sufficient authority, and some payments were made at inflated prices. In one case, work estimated at around £20 was billed at £300. Duplicate invoices and same-day payment processing also raised red flags.

Record-keeping was described as poor, with missing documentation, weak audit trails, and insufficient transparency in decision-making. Investigators also noted potential conflicts of interest and failures to declare gifts and hospitality.

Role of interim officers

The problems centred on the use of 11 interim officers, whose contracts were terminated in September 2024. Investigators found examples of interim staff authorising significant expenditure without proper oversight. Some decisions were signed off as staff were leaving their posts, raising concerns about accountability.

Critics argue the reliance on temporary staff contributed to governance lapses. Interim appointments are often used to provide short-term expertise, but in this case they were given significant authority without the checks normally applied to permanent officers.

Council response

Dorset Council has pledged “accountability and improvement” in response to the reports. Measures being put in place include stronger financial monitoring, tighter procurement controls, clearer governance structures, and a review of interim staffing arrangements.

A spokesperson said the council was committed to learning lessons and rebuilding public trust: “We recognise the seriousness of these findings and are acting decisively to strengthen oversight, improve processes, and ensure residents can have confidence in how their money is managed.”

Wider implications

The scale of the overspend and the weaknesses identified echo problems seen in other councils, where urgent projects have bypassed standard procurement rules. The findings will likely add to national debates about the use of interim officers and the robustness of local government financial controls.

For Dorset residents, the immediate concern is the cost. With council tax rising and services under pressure, questions remain over how millions of pounds were spent without proper scrutiny — and whether similar failures could happen again.

Nick Ireland – Dorset Council Leader says “I take the findings of these reports extremely seriously. While the original aim of this work was to ensure the safety of our residents and address longstanding issues, the way it was delivered fell well short of the standards our residents have a right to expect.

These failures pre-date the current administration, but it is my responsibility as Leader to ensure we put things right. A robust action plan has been developed and a dedicated team is in place to deliver it.

It is essential that public funds are managed with integrity and transparency. We owe it to Dorset’s residents to learn from this, to strengthen our systems, and to ensure such failures cannot happen again.”

Because the council is forecasting overspends (one report noted a potential overspend of around £13.2 million in one financial year) and has acknowledged considerable budget pressures, there is a risk that future budgets may require further increases or cuts to services if efficiency improvements and oversight reforms don’t reduce losses.

The existing tax rise is largely attributed to cost pressures (e.g. social care, inflation), rather than specifically to the governance failings. However, the failures may make cost pressures worse if they lead to waste or extra remedial costs. So even without a direct announcement linking them, taxpayers may indirectly feel the effects through fewer reserves or higher future demands.

Not the first time

This is not the first time Dorset Council has faced criticism over its management of money.

Earlier this year, the council warned of a £30 million budget gap for 2025/26, citing rising costs and pressures on services. In February, councillors approved a council tax rise of just under 5% to help close the shortfall. (dorsetcouncil.gov.uk)

Independent auditors have also previously raised concerns over weaknesses in financial controls and procurement processes. The 2022 audit into building compliance flagged shortcomings that, if not addressed, could lead to significant overspends — concerns now borne out by the latest findings.

Taken together, these episodes paint a picture of a council struggling to keep tight control over its finances, raising questions about whether residents can trust that their money is being managed responsibly.