Shropshire Star

Overspend of £4 million looms at Shropshire Council despite cuts

Shropshire Council is currently facing a £4 million overspend on its 2015/16 budget.

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The figure has been revealed in a cabinet report updating councillors on the authority's revenue position for this financial year.

The report also indicates that £7.6 million out of £24.2m of planned savings for the year are currently "not solved on an ongoing basis, nor have they been achieved in the financial year".

The report states: "Further work is required within service areas to ensure that the total value of savings proposals are fully deliverable within the financial year.

"Furthermore a number of additional service pressures of £5.6m are already being highlighted, which services will need to address alongside delivering their savings targets."

Another £7.2m of savings are listed as having been identified, although the report says there is currently no evidence that they will be achieved.

The report indicates that if they are not realised the council would face an overspend of £11m. It states: "Management has provided assurance that plans are in place to deliver the savings that have been categorised as amber, however, as evidence of the delivery has not yet been identified, there is still a risk that these could cause a pressure on the out-turn position for 2015/16."

However, the council has highlighted that £14m of the savings have a "high certainty of being delivered".

This financial year is the second of the council's latest three year "medium term financial plan", which requires departments to cut their budgets by a combined total of £80m.

For 2015/16 adult services has been asked to save £13.9m, children's service £3m, commissioning £5m, public health £100,000, resources and support £1.6m, and corporate £4.2m.

Keith Barrow, the leader of Shropshire Council, said he is confident the authority will deliver a balanced budget and said the focus is on securing the council's long term financial position.

He said: "We are still trying to digest what happens with business rates, trying to understand that and build it into our financial models going forward."

Councillor Barrow also praised the efforts of officers in trying to meet difficult targets.

He said: "I think there is a commitment from all officers to deliver the savings they are asked to find, it just gets progressively more difficult, bearing in mind this is on the back of £120 million we have already saved – but we do not have much of a choice, either we deliver a balanced budget or the Government will do it for us."

Councillor Barrow said the financial position backed up the wisdom of building up the council's reserves.

He said: "It is one of the reasons we built up our reserves. They were as low as £2.6m at one point, now they are about £16 million. We did that deliberately even though people called on us to spend it."

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