Agenda item

Lead Member: Councillor Heather Kidd, Leader

Lead Officer: Duncan Whitfield, Interim Executive Director (S151) and Kassandra Polyzoides, Interim Service Director - Place Shaping

RESOLVED:

That Cabinet:

1. Noted the Financial Sustainability and Recovery Strategy contained within the MTFP reported to Cabinet on 8 July 2026, and especially the priorities in respect of asset disposals during the period of financial recovery;

2. Noted the current valuations (RBVs) for the Shirehall site set out at paragraphs 4.6 and 4.7 and in Table 1;

3. Agreed to take steps to move urgently and in principle to the marketing for sale and disposal of the site with minimum conditions attached;

4. Delegated authority to the Service Director – Place Shaping, in consultation with the s151 Officer and Monitoring Officer, to take the necessary steps to implement this decision, including preparation of a marketing prospectus for presentation to Cabinet for agreement in the Autumn;

5. Noted that the marketing prospectus will confirm the preference for the site to be utilised for Housing development including both private and affordable, subject to planning consent, whilst achieving the earliest and optimum return to the Council;

6. Noted that the marketing prospectus will refer to the additional preferences identified by Council in December 2025, namely (sic) to pursue the development for mixed use incorporating healthcare, affordable supported living and commercial as well as residential units but these will be guides and not imperatives as part of any proposal;

7. Noted that the marketing prospectus will be published together with evaluation criteria to guide Cabinet in the selection of a preferred developer.

8. Noted that development proposals including sale values will be invited for evaluation by the Director of Place Shaping from any interested party or parties, including joint ventures;

9. Noted that the Council’s stated preference, to be set out in the marketing prospectus will be for the selected developer to commit to both obtaining planning consent and demolition or refurbishment of the building as part of the developer’s proposal;

10.Noted that a further update report including the draft prospectus for sale will be provided to Cabinet by Officers in the Autumn;

11.Noted that Officers will make all efforts to minimise the current running costs of the Shirehall site while appropriate levels of security and completing the vacation of the building to enable vacant possession of the site;

12.Noted that a separate report on the future options for the Shirehall Overspill car park site will be presented to Cabinet in September 2026; and

13.Noted that any proceeds from the sale will be prioritised to reduce the Council’s need for Exceptional Financial Support (‘EFS’).

The Portfolio Holder for Finance introduced the report on the future of Shirehall and outlined the recommendations before Cabinet. It was explained that the Council’s financial position had changed significantly since previous decisions had been taken, with the authority now relying on Exceptional Financial Support (EFS) and facing increased scrutiny from Government regarding asset disposals and financial sustainability.

The Section 151 Officer advised that the Council had an estimated £90 million funding gap after mitigation measures and that Government expected redundant assets to be disposed of to reduce reliance on borrowing. He noted that Shirehall was costing in excess of £500,000 per year to maintain while vacant and that substantial investment would be required to bring the building back into use. He therefore recommended that the site be marketed openly, with minimal restrictions, to maximise value and secure a capital receipt.

Cabinet considered an independent review prepared by Chris Buss which examined previous options for the site, including redevelopment, joint ventures and retention. The review concluded that, given the Council’s current financial circumstances, disposal of the site through an open marketing process represented the quickest route to reducing costs, generating a capital receipt and meeting Government expectations. It was noted that the proposed approach would not predetermine demolition and would allow the market to bring forward proposals for retention, refurbishment, redevelopment or mixed-use schemes.

In moving the recommendations, the Portfolio Holder for Finance emphasised that the Council was not in a position to invest further funds in the site and that decisions needed to be considered in the context of the authority’s financial recovery strategy. The Deputy Leader seconded the recommendations, acknowledging the historic and community significance of Shirehall but stating that the Council could not justify investing significant sums in speculative redevelopment proposals. He highlighted that the recommendations would enable all future options for the site to remain open whilst reducing financial risk to the authority.

As agreed, Members moved to consider the two Members’ questions which had been received as part of Member Question Time:

Dawn Husemann in relation to the redevelopment of Shirehall and the net zero target. In response to a supplementary question regarding how potential demolition of Shirehall could be reconciled with the Council’s net zero ambitions, Cabinet members and officers stated that the carbon impact of any future scheme could only be assessed once detailed proposals were received through the marketing process. It was also noted that continued vacancy of the building carried its own environmental and financial costs, and that all discretionary spending, including carbon reduction budgets, would be subject to scrutiny as part of the Council’s wider financial recovery programme.

Brendan Mallon in relation to the sale of Shirehall and the financial comparison between the 2-track approach. In response to a supplementary question regarding an immediate sale being the most effective option, Cabinet members and officers advised that joint venture arrangements would involve significant cost, risk and lengthy procurement timescales. It was noted that the proposed marketing process would remain open to development and partnership proposals from external parties, with all options assessed against best consideration and the Council’s financial recovery requirements. Officers confirmed that alternative options would be considered if the marketing exercise failed to deliver an acceptable outcome.

The full questions and responses can be found on the webpage for the meeting - Agenda for Cabinet on Tuesday, 14th July, 2026, 10.30 am — Shropshire Council

With permission of the Leader, each Group Leader, together with representation from the Task & Finish Group, were permitted to speak for three minutes.

Group Leaders commented on the future of Shirehall, reflecting a range of views on the building’s heritage significance, its potential for regeneration and the Council’s financial position. Reference was made to the work of the Task and Finish Group and the independent review, with some members expressing concern that alternative options, including joint ventures and wider redevelopment opportunities, had not been fully explored. Others highlighted the Council’s reliance on Exceptional Financial Support, the absence of available capital funding, and the need to reduce financial risk and ongoing revenue costs. Cabinet members reiterated that the proposed approach would not predetermine demolition, would allow all options to come forward through the market, and represented the most realistic course of action in light of the authority’s financial circumstances.

With permission of the Leader, elected members were permitted to speak for three minutes.

Members sought reassurance that alternative options, including joint venture arrangements and potential redevelopment opportunities, would continue to be explored alongside the proposed marketing exercise.

In response, officers advised that the marketing process would be open to a wide range of proposals and would help establish the level of market interest in the site. Members also raised issues relating to the history of decisions concerning Shirehall, the Council’s financial position, organisational capacity, and the heritage value of the building. Cabinet members and officers reiterated that the Council was unable to fund redevelopment itself and that progressing to market represented the most practical way of reducing financial risk while maintaining flexibility for future proposals.

Cabinet members thanked the members of the public and other elected members for their input into the debate.