Latest figures shows slight improvement to Shropshire Council's perilous financial position

The latest finance report from Shropshire Council has suggested a slight improvement to its perilous financial position. 

Shropshire Council has published its second quarterly report for the year, detailing its financial position as of the end of September, as part of the agenda for a Cabinet meeting on November 30.

The report shows a projected overspend of £35.1 million, marking a slight improvement on the projected position at the end of August, where the overspend was predicted to be around £37 million. 

Whilst this could be covered by the council’s £38.8m general fund reserves balance, it would leave funds for unforeseen emergencies as low as £3.7m. 

In October, an analysis of the council's perilous financial position showed that the authority is planning to make the most savings of any council in England per person – £191 for each person.

The council has published monthly finance reports since the start of the financial year, as it overcomes a challenge from increased demand and cost for services, especially in social care, like councils all over the country. 

They've long said their position is made even more challenging by its rural geography because it costs more to deliver services when communities are spread across a large area.   

The council has carried out a number of its savings plans since the start of the financial year - including introducing a controversial new charge for collecting garden waste, a booking system for household recycling centres, and moving out of its Shirehall headquarters in Shrewsbury. 

The quarter two report shows that the council expects to deliver £47m of savings from its budget by the end of the year - 53 per cent of the total savings needed.  

This includes savings plans from the council’s medium–term financial strategy, as well as savings not fully realised in previous years and additional plans related to managing demand. 

Gwilym Butler, Shropshire Council’s cabinet member for finance, corporate resources and communities said:  “While the projected overspend has not significantly changed since the first quarter of the year, the underlying figures have become more robust. As each month progresses, more of the council’s spending and income becomes certain, and this reduces the risks.

“What we have now is a clear picture of the steps we must take next, in addition to the major changes we have already introduced, like the new charge for garden waste, taking us in the right direction to overcome our challenge.

“This report shows that the council’s budget is as challenging as ever, but that there is scope to improve the position if we stay focused on our plans, prioritising services for the people who need us most and delivering these as efficiently as we can.”