COUNCIL tax is set to rise next year for Dorset residents.

Dorset County Council will increase its share of the bill by just less than two per cent, but says there will be “tough choices” ahead.

It says without an increase the council would need to find further savings on top of the £15m already needed in 2015/6.

A drop in the main grant the council receives from central government, as well as reductions in other specific grants, means that the council will need to continue to find significant savings in coming years.

This is on top of £60m savings made in recent years.

The council’s Forward Together Transformation programme has identified savings of £14.7m for 2015/6 and the £532,000 shortfall will be funded from the collection fund surplus.

Council leader Robert Gould said: “There continue to be tough choices to be made as we strive to deliver the services that our residents tell us they value with ever-reducing funding.

“The budget I have set out is challenging but we are ambitious and optimistic for the future.

“The drive for efficiency must continue. It is also important that we work closely with all of our public service partners in Dorset to make public funds go further.”

One example of working with partners is the local authority trading company being set up in the summer by Dorset, Bournemouth and Poole to deliver a range of adult social care services.

Cllr Gould added: “I believe this modest increase in council tax is an acceptable way to avoid a further £1.8m cut in the base budget.

“If we are to realise our vision for more independent local government, we need to raise more of our own income locally.”

He also outlined plans for capital spending, which include £2m towards road repairs.

Cllr Gould said: “Sound finances are the essential foundation to delivering our vision. But they are not all that we are about.

“My view is that great opportunities for Dorset lie ahead.”

The council will also be supporting local schemes in communities by continuing to fund member budgets, giving each councillor £5,000 to allocate to initiatives in their area.