£19m towards £51m spending reduction target after just two months 

In the first two months of the new financial year, Shropshire Council is set to achieve £19m of the £51m spending reductions it must find this year. 

This is equivalent to 37% of the spending reductions the council must find by April 2024, and is the most significant figure the council has ever achieved so early in a financial year. 

The council says that steps it has taken mean that by the end of May 2023 it has very high confidence that it has made £19m in spending reductions it must find to stay within budget. 

It has also boosted the council’s reserves by £20m, an issue highlighted by a recent peer review of the council by the Local Government Association. 

Among the measures that have contributed to the £19m spending reductions so far include:-  

• A new discharge model with our partners to better plan support for people receiving care so that we improve outcomes and reduce time in care. 
• Use of digital devices to reduce care needs and support independence. For example, Shropshire will start a trial of a digital social care check-in service called Genie in the next few weeks. 
• Investing in Early Help and early intervention to prevent children becoming looked-after.

The council says that it has greatly improved its financial information, ensuring this is the most up to date and accurate position possible. 

Gwilym Butler, Shropshire Council’s Cabinet member for finance and corporate resources, said:-

“This is a fantastic achievement so early in the year and shows we are on track to achieve our £51m spending reductions. 

“We have already delivered, or have high confidence in, £19m of spending reductions, and have a clear plan to deliver the remaining £32m spending reductions. 

“We have also managed to boost our much-depleted reserves to a more sustainable position. 

“It’s a great start, but we still face a very tough challenge to achieve the remaining £32m we must find at a time when inflation and ever-rising demand for our services is putting growing pressure on our finances. 

“That’s why reducing demand for our services, particularly for social care which accounts for around 75% of our day to day spend, and encouraging people to be as independent as possible rather dependent on council services, is key.

“We have a clear plan to reduce spend through innovative interventions to manage demand pressures and improve outcomes, and I am more confident than ever that we will be able to do so. 

”However, we need to be clear that to achieve the target requires many difficult and tough decisions, and we will need to be very robust and focused in how we do this. “