Council's overspend forecast of £35.1m 'is better'

The council has published monthly reports since the start of the financial year

A council that says its financial situation is "heartbreaking" has issued latest overspend figures that are slightly better than expected.

Shropshire Council has forecast a £35.1m overspend as of the end of September, which is better than its projected position the previous month.

However, while this could be covered by its £38.8m general fund reserves balance, it would leaves its budget for unforeseen emergencies at £3.7m.

The local authority, which has pinpointed a rise in the demand for services for its financial hardship, has published monthly reports since the start of the year because of its situation.

The percentage of its net budget spent on social care has increased from 58% to 74%, over the last six years, and the number of children in council care has risen by more than 80% since 2020, the figures show.

'Limp to March'

After months of uncertainty, the figures suggest the council will limp to the end of March and avoid running out of money.

But using reserves, effectively the council’s rainy day piggy bank, to meet the predicted overspend of £35.1m leaves the authority exposed.

There is only £38.8m in the pot, so another shock, like the invasion of Ukraine in 2022, and the subsequent impact on inflation, could push the council into the red.

Either way, bosses and members of the ruling Conservative group can breathe a sigh of relief and hope that the winter months don’t lead to a significant increase in the demand for services.

£56 for gardening waste

The council needs to save £62.5m in 2024/25, which is equivalent to £191 per resident, and is more than any other council in England.

The latest report suggests it currently expects to deliver £47m of savings by the end of the year, meaning it is reviewing the impact on 2025/26 and assessing how to minimise this over the next four months.

Changes to boost finances have included charging people £56 a year to remove garden waste, which about 63,000 residents have signed up for.

The financial monitoring report for quarter two will be sent to the council's cabinet next Wednesday.

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

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