Shropshire Council predicts funding shortfall of £24m

Shropshire Council will discuss finances in the next Cabinet meeting on 18 October

Shropshire Council predicts a funding shortfall of almost £24m next year, a report to its cabinet has revealed.The Conservative-run council said the gap was due to inflation and a rise in the demand for services, especially social care.

Earlier this year the shortfall was predicted to be £1m but now initial calculations have increased the estimated budget gap next year to £23.6m.

The funding will be discussed at a meeting of the cabinet on Wednesday.

In February this year, it was reported that Shropshire Council was facing a budget overspend of about £10m due to rising costs and pressure on services.

In September, a cabinet meeting revealed council leaders had discussed issuing a section 114 notice - effectively declaring bankruptcy - but said they had formed a plan to avoid it.

Earlier in the year, Council Leader Lezley Picton said inflation and increased demand for services meant the council's reserves were "practically gone".

More information about how council will meet the needs of social care demands will be discussed at the meeting next week.

Recently, a virtual care project was awarded more than £1m of government funding to support adults in Shropshire.