'Unacceptable, unsustainable' - Stark warning in Shropshire Council’s latest financial forecast

That is the stark warning from one of the authority’s senior officers as he lays bare the latest figures.

Executive director James Walton has predicted an overspend of £13.174 million for the end of the 2025/26 financial year, which he said limits the council’s ability to sustain unforeseen financial pressures.

“This is not acceptable or sustainable and requires urgent management intervention in all portfolio areas to secure corrections,” said Mr Walton.

“While it is inevitable that not all savings can be delivered exactly to the value planned, there are several areas where further work to improve the forecast can be progressed. Overall, every effort needs to be made to secure robust forecasts in all areas, based on clear operational plans, which remain within, or close to, budgeted funding limits.”

Mr Walton added that the current savings projection for 2025/26 (including savings brought forward from the previous year) is £31.438m, which represents around 53 per cent of the total amount to be delivered. Therefore, there is a non-delivery of £28.439m.

However, Mr Walton has said the central budget forecast has improved slightly.

“This change is partly due to better information providing a more robust, if still exceptionally early, view of the financial position, particularly around potential savings delivery,” said Mr Walton.

The report has been sent to cabinet ahead of its meeting next Wednesday (July 9). Members are warned that if no further action is taken, the council’s General Fund Balance – also known as unearmarked reserves – would be just £600,000.

They are therefore being recommended to ensure necessary action is taken to improve the period two forecast, formally acknowledge that the current information indicates the need for urgent corrective action, and request that the council’s senior team undertakes that urgently.