Urgent action urged over council's finances

Executive director James Walton said a predicted £13.174m overspend limited the council's ability to cope with unexpected financial pressures

Urgent management intervention is needed to "secure corrections" to help Shropshire Council's "unacceptable" finances, a senior officer has warned.

Executive director James Walton predicted an overspend of £13.174m for the end of 2025-26.

Mr Walton added that the current savings projection for this financial year, including savings brought forward from the previous year, is £31.438m - about 53% of the total amount to be delivered.

The report has gone to the council's cabinet ahead of its meeting on Wednesday and members are warned that, if no more action is taken, the council's unearmarked reserves would be only £600,000.

But Mr Walton said the central budget forecast has improved slightly.

"This change is partly due to better information providing a more robust, if still exceptionally early, view of the financial position, particularly around potential savings delivery," he stated.

The executive director said the predicted overspend limited the council's ability to cope with unforeseen financial pressures.

He stated: "This is not acceptable or sustainable and requires urgent management intervention in all portfolio areas to secure corrections."

Mr Walton said, while it was inevitable not all savings could be delivered exactly to the value planned, there were several areas "where further work to improve the forecast can be progressed".

The cabinet was recommended to formally acknowledge that the current information indicated the need for urgent action.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.