PLANS to combine adult social care services across Dorset have been 'agreed in principle', according to the county's local authorities.

The first of its kind in the UK, a Dorset-wide Local Authority Trading Company (LATC), which the councils would hold 100 per cent of the shares in, is being considered by Dorset County Council, Bournemouth Borough Council and Borough of Poole.

The councils claim the ability of the LATC to raise income from those who receive a direct payment, informal carers and those who fund their care privately would allow for savings to be made.

Cllr Blair Crawford, Bournemouth council's cabinet member for adult social care, said: “In these days of financial restraints and with a growing older population we have to look at ways we can continue to deliver our services and how we can develop them in the future.

“A Local Authority Trading Company would give us the freedom to be as adaptable and flexible as those who currently operate in the private sector whilst at the same time ensuring we are able to fulfil our commitment to providing care to those who need it.”

Poole council's cabinet portfolio holder for adult social care, Cllr Karen Rampton, said the new company will provide an 'exciting opportunity' to improve the way services are delivered.

She added: “I look forward to working alongside colleagues to move this forward following the approval by council.”

The company would have a combined budget of almost £37million, which the councils say compares favourably with other similarly-sized LATCs elsewhere in the country that are performing well financially.