Shropshire Council saving £43 million to balance budgets

Members of the authority's cabinet met yesterday and approved an updated financial strategy, which included new multi-million pound savings designed to help the council balance its books.

However, despite significant progress, the report showed there is still a funding shortfall this year of more than £20m which increases to £27,227,518 in 2022/23. Last month when cabinet met, it predicted a shortfall of £59,270,364 by 2022/23.

Council leader Peter Nutting said the authority is working hard to get the budget under control.

He said: "We're now getting to a situation where it looks like we are okay for the next three years. There is still a little bit of an issue after that but I do think we're in a pretty good position now.

"Of course we would love the government to give us another £20m or £30m, which we think we deserve, but the good news is that it is getting better."

Councillors also approved a £5m cut to the highways maintenance budget and £500,000 from adult services.

A report from the council’s chief finance officer James Walton said: "These proposals that have been put forward will generate significant savings from a reduction in discretionary spend in highways maintenance and adult services preventative spend."

The savings will be made on a permanent basis but will be reviewed in 2010/21. At that time if alternative proposals are in place, the decisions may be reversed.

Shropshire Council says it has identified more than £21m in savings by focusing on innovation, which includes £3m by making efficiencies to buildings and a further £10m from the digital transformation programme, which it claims will revolutionise the way systems and processes are managed within the council.

More than £17m will be raised through income generation, which includes about £10m from its investment in property such as Shrewsbury’s shopping centres.

And more than £4m will be saved through cuts to services including £556,000 from the home to school transport budget.

Mr Walton added: "With the approval of the £43.079m proposed gross savings, a balanced budget can be achieved for 2018/19 and 2019/20."

The remainder of the money will come from one-off government grants and council reserves.