Lead Member – Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer – James Walton, Executive Director of Resources

RESOLVED:

3.1. To ensure necessary action is taken to improve Period 2 forecast (31st May 2025), by year end in terms of the indicative level of savings delivery of £31.438m (53%), resulting in a projected spend over budget of £13.174m for 2025/26.

3.2. To note the projected General Fund Balance would be £0.606m if no further action were taken.

3.3. To formally acknowledge that the current information indicates the need for urgent corrective action, and to request that the Council’s senior team undertakes that urgently

Cllr Roger Evans, Portfolio Holder for Finance introduced the period 2 report which highlighted an exceptionally challenging financial position for the Council with a forecasted overspend of £13.174 million by 31 March 2026.  This would result in a significant reduction of the General fund Balance if no further action was taken.  Reasons included insufficient savings realization, higher-than-budgeted demand in social care, and potential unforeseen budget pressures.   

Responding to questions, he reported on the aim to improve the level of general reserves to ensure the council could meet unexpected calls on service, and reported that a new Budget Forum would be set up where all group leaders would be invited to attend to maximise transparency and collaboration when it came to making difficult budget decisions.

The Portfolio Holder for Social Care reiterated the commitment to keeping residents of Shropshire safe, secure and supported appropriately and reported on hard work underway to deliver preventative services which would result in longer term savings. 

The Leader referred to the challenges of delivering services in a rural county, particularly one with an aging demographic.  The cancellation of the Rural Services Delivery Grant had further increased financial pressure.   She reported that the forthcoming Corporate Peer Challenge would have financial sustainability within its remit and that robust representation would be made to government on the additional costs of delivering services over a large rural area.

RESOLVED:

3.1. To ensure necessary action is taken to improve Period 2 forecast (31st May 2025), by year end in terms of the indicative level of savings delivery of £31.438m (53%), resulting in a projected spend over budget of £13.174m for 2025/26.

3.2. To note the projected General Fund Balance would be £0.606m if no further action were taken.

3.3. To formally acknowledge that the current information indicates the need for urgent corrective action, and to request that the Council’s senior team undertakes that urgently