BOURNEMOUTH council must still find £1.4 million of savings to balance its budget this year.

The figure is down from the £2.5m shortfall forecast two months ago, but only part of a £13m funding gap over the next three years.

The borough's "planning assumption" is that it will raise council tax by 4.99 per cent for 2018/19, the maximum currently allowed without a local poll. Of this, three per cent must go to fund social care, a growing cost.

Back in July it was reported that the council, together with Borough of Poole, must find £27.8 in savings by April 2021.

The need to save cash is one of the motivations behind the Future Dorset proposal to merge the two towns with Christchurch under a single unitary authority.

According to the December update on the borough's Medium Term Financial Plan, Bournemouth has seen a £60m reduction to its Government funding per year, compared with 2010/11, the equivalent of £672 per year per household.

The report by chief financial officer Adam Richens states: "The council's finances will therefore remain under immense pressure but not only due to the ongoing reductions in government funding.

"Cost increases through such factors as the Living Wage as well as the relentless increase in demand for council services, particularly those related to vulnerable adults and children, will also play a significant role.

"This unprecedented increase in demand for council services can be partially attributed to the 10.3 per cent increase in Bournemouth’s population already experienced over the period of austerity."