COUNCILS will discuss raising council tax by six per cent this week following reports of funding crisis at Northamptonshire County Council.

That authority last week announced a ‘section 114’ notice meaning it will provide nothing over and above those services required by statute in a bid to make savings of £105m from 2018/19 to 2021/22.

The Government has launched an investigation into its finances, with concerns expressed over its internal financial controls. However, the council’s Conservative administration has blamed a “perfect storm” of rising demand for services and Government cuts for its failure.

Borough of Poole’s cabinet will meet today, and Bournemouth council’s tomorrow, to discuss their medium term financial plans and 2018/19 budgets and council tax. Dorset County Council’s cabinet has already made its recommendations.

The county council faces a funding gap for the next three years of £37.3m. Bournemouth must make cuts or boost income to meet a £12.4m gap, and Poole’s shortfall is £6.6m.

Note that local authorities have different-sized budgets and therefore deficits.

However, Bournemouth and Poole claim there is no danger of them having to suspend non-essential services.

Bournemouth council leader John Beesley said: “We are aware of the situation at Northamptonshire County Council, but I can reassure you that despite the unprecedented financial challenges we are facing in Bournemouth, the council will continue to meet its obligations and a formal budget recommendation will be going to cabinet on Wednesday this week.”

Cllr May Haines, deputy leader at Borough of Poole, responded to the Echo's call via the council press office. "We have a clear strategy aimed at putting the council’s budget on a sustainable footing without having to rely on our financial reserves," she said.

"Our commitment to planning ahead for when the government withdraws its core funding for local services in 2019 means we are in a position to propose a balanced budget for the next 12 months with no use of reserves.

"While we still face major financial pressures over the next three years, we feel that our strategy for sustainable budgeting will enable us to deal with this challenge."

Dorset county councillor Tony Ferrari, its cabinet member for resources, did not respond to the Echo's call for comment.

Whatever the council cabinets agree this week, it will be for their respective full councils to make the final decision.

All three are proposing to raise council tax for 2018/19 by the maximum value permitted without holding a referendum - six per cent. This includes the 2.99 per cent core increase within the Government’s cap, and the three per cent optional social care precept.

Both Bournemouth and Poole councils say they have only raised council tax twice since 2010.

Bournemouth cabinet report states: “Note that even after the proposal set out in this report there will have been an 11 per cent real terms reduction in Bournemouth’s council tax over the period since 2010 (as measured against the retail price index).”

The equivalent reduction for Poole is 10 per cent.