Lead Member – Cllr Roger Evans, Portfolio Holder for Finance

Lead Officer – James Walton, Executive Director (S151 Officer)

RESOLVED:

that Cabinet Members:

A. Ensure emergency action is continued by all Officers between October and March to improve the forecast position (currently a projected spend over budget at Period 5 of £35.531m). Such action should predominantly focus on reducing spend, increasing income, delivering remaining savings and significant mitigating actions to control in-year spending pressures.

B. Note that Operations Boards, which have been in place from August 2025, continue to challenge all in-year spending.

C. Note that the Period 5 position (as at the end of August) forecasts indicative level of savings delivery of £33.981m (57%),

D. Note the projected General Fund Balance is now negative (£1.251m), indicating a potentially illegal financial position by the end of the financial year if proposed action does not improve this position.

E. Note that, in light of the Council’s current financial position and ongoing engagement with MHCLG, active discussions regarding Exceptional Financial Support (EFS) have commenced

The Portfolio Holder for Finance presented the period 5 report which showed thecouncil's financial position at the end of August, with a worsening forecast and a predicted overspend of £1.251 million if no further reductions or income increases occurred.  The budget and savings target for the year was set by the previous administration, requiring £41m in savings not previously achieved, plus another £19 million for the current year totalling £60 million.  Of this there were no concrete plans in place to save over £28 million. Net expenditure was predicted to increase by £35.5 million, and even after using all general reserves, an overspend would remain.

The Portfolio Holder said that the emergency measures implemented in September, including spend control boards and a focus on reducing spend and delivering savings should be reflected in improvement in the period 6 report. 

Discussion covered how central government funding formulas did not recognise the cost of delivery of rural services and disadvantaged rural councils like Shropshire.  The removal of the Rural Services Delivery Grant, and statutory service pressures (especially adult and children's social care) were driving overspends.   Efficiency savings alone would not be enough, and difficult decisions on service changes would be needed.  The Leader reiterated that the Administration was committed to transparency and consultation with councillors and the public on proposals.    

RESOLVED:

that Cabinet Members:

A. Ensure emergency action is continued by all Officers between October and March to improve the forecast position (currently a projected spend over budget at Period 5 of £35.531m). Such action should predominantly focus on reducing spend, increasing income, delivering remaining savings and significant mitigating actions to control in-year spending pressures.

B. Note that Operations Boards, which have been in place from August 2025, continue to challenge all in-year spending.

C. Note that the Period 5 position (as at the end of August) forecasts indicative level of savings delivery of £33.981m (57%),

D. Note the projected General Fund Balance is now negative (£1.251m), indicating a potentially illegal financial position by the end of the financial year if proposed action does not improve this position.

E. Note that, in light of the Council’s current financial position and ongoing engagement with MHCLG, active discussions regarding Exceptional Financial Support (EFS) have commenced