Council's finances get worse but are 'manageable'

Shropshire Council's financial position has worsened, latest figures show, but the authority said the situation could be managed.

By 31 December, the forecast overspend for this financial year had reached £53.2m, an increase of £2.516m on two months earlier.

However, the council said the rise could be managed by releasing the extra amount from its established financial strategy reserve.

The council announced a financial emergency last September and since then has been working with the Local Government Association (LGA) to support actions to rectify the current position.

Last month, the authority said its spiralling financial situation could leave residents paying off hundreds of millions of pounds worth of debt for decades to come.

It could borrow almost £800m over the next five years to pay for increasing annual funding gaps.

If no action is taken to generate money and reduce spending, the council predicts the gap between its income and expenditure would rise from £130m in 2026-27 to £195m by 2030-31.

The council has submitted an application to the government, via the Ministry for Housing, Communities and Local Government (MHCLG), for Exceptional Financial Support for 2025-26 and future years.

The MHCLG is expected to make its decision by the middle of this month.

The Transformation and Improvement Overview and Scrutiny Committee will meet on Monday and discuss the latest financial period.

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

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