Shropshire Council issues update on budget - bosses say 'more difficult decisions ahead'

The cash-strapped local authority has revealed that its budget overspend has "slightly" fallen to £34m.

But, a council boss says the outlook "remains extremely challenging" and that "more difficult decisions lie ahead" due to the authority's current financial position. 

Using the latest available information - for the 11th month of the year - the county council stated that it expects to have "sufficient reserves" in its 'General Fund Balance' to cover the forecast overspend.

It said the fund will have "almost" £5m at the end of the year. 

A report states that the council expects to achieve 52 per cent of its £90m saving target, and has plans for the £44m of outstanding savings from this year and previous years. 

However, Shropshire Council said the report "stresses that the council’s financial position remains extremely challenging". 

The authority said it faces continuing pressures from rising demand and growing costs for services including social care which it claims accounts for around £4 in every £5 of the council's budget. 

A council statement said: "Like many councils nationwide, Shropshire is also seeing continuing pressures in many areas of social care such as external residential placements, fostering and growing numbers of children with special needs requiring home to school transport."

It said it has approved an £18m programme of savings for the financial year 2025/26. This includes a review of waste services and improving park and ride services in Shrewsbury to increase income. 

James Walton, executive director for resources at Shropshire Council, said: "The report shows our position has improved slightly and the expected overspend by the year-end is reduced by almost £900,000 and can be met from our General Fund Balance reserves, meaning we remain in budget. 

"The £47m savings that Shropshire Council has achieved this year  - equivalent to around 18 per cent of our day-to-day budget - is one of the highest figures proportionately of any council in the country. This comes after achieving £51m of savings in previous year. 

"We must be clear to the people of Shropshire - the outlook remains extremely challenging, particularly as demand for social care continues to rise. More difficult decisions lie ahead. In our medium term financial strategy, however, we have plans for further savings next year, as well as delivering on any outstanding savings that for a variety of reasons cannot be delivered quickly."

The county council said its final year end figure is expected to be published in May.