Lead Member – Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer – Duncan Whitfield, Interim Director Finance Improvement (Section 151 Officer)

REPORT TO FOLLOW

RESOLVED:

1. That Cabinet note that the final settlement has been received in line with the provisional statement and in particular the special permission for Shropshire to raise an additional 4% supplement above the Council Tax limit of 4.99%.

2. That the S151 Officer be requested to make amendments to the budget report to be presented at Council on the 26^th February to include a recommended supplement of 4% on Council Tax with a compensating reduction in the Exceptional Financial Support.

3. That the S151 Officer be requested to ensure that appropriate officer support is available within the Council Tax team to provide advice and guidance to those who may be most impacted by this increase. This is to ensure they are receiving all financial support available to them through benefits and the Government Crisis Resilience scheme.

To receive and consider the Financial Strategy 2026/27 - 2030/31, to be known in future as “Draft 2026/27 General Fund budgets and Medium Term Financial Plan 2026-2031”.

REPORT TO FOLLOW

The Interim Finance Director introduced the report which provided an updated position on the draft 2026/27 General Fund budgets and Medium-Term Financial Plan 2026/27 – 2030/31 since the meeting of Cabinet on 21st January 2026.

Members highlighted the importance of managing future demand, particularly in adult and children’s social care, and stressed the need for a stronger preventative approach across the Council and its partners.

Concern was expressed about the long?term sustainability of the Council’s finances in light of rising demand, inflationary pressures and uncertainty in future funding. Members noted the risks associated with reliance on Exceptional Financial Support, including uncertainty around timing and any conditions that may be attached.

The Committee emphasised that prevention and partnership working would be essential to reducing demand over the medium to long term, while recognising current capacity constraints and operational pressures.

Members acknowledged that stabilising the budget in 2026/27 would be necessary before longer?term transformation and demand?reduction ambitions could be fully realised.