The redundancy of Bournemouth Borough Council’s managing director will cost the council around £475,000 as part of the merger of Dorset’s councils.

The county’s nine local authorities are set to become two unitary councils in April in a reorganisation that is projected to save the area £108m in the first six years.

In August, the new Dorset authority warned redundancy costs for four chief executives could cost £1m. The Bournemouth, Christchurch and Poole Council has set aside £1.5m for these costs.

Bournemouth Borough Council’s managing director Jane Portman, who missed out on the BCP Council chief executive role, has announced she will be leaving at the end of March.

After 33 years working in the public sector, Ms Portman will receive a £117,000 redundancy payout and a £355,000 pension contribution.

‘I am proud to have led the local government reorganisation programme for BCP Council, and I wish the new council every success for the future,’ she said.

‘I absolutely must pay tribute to our fantastic workforce and our partners across so many sectors. Their professionalism and dedication are second to none, working together every day for the best interests of our residents.

‘I am confident I leave behind me staff that are ready to continue in that vein for BCP Council in the future.’

Bournemouth Council leader John Beesley said: ‘I cannot thank Jane enough on behalf of the Council for her strong insight and leadership during her time at Bournemouth Council.

‘She has been instrumental in driving forward the business case for change and delivering the new Bournemouth, Christchurch and Poole Council. ‘Her reputation and years of exemplary work in areas where she was ultimately responsible for Bournemouth’s most vulnerable people has been outstanding.’

‘After so many years of excellent local government service, she will be greatly missed,’ he added.