Finance report shows slight improvement to forecast position

Shropshire Council has published its second quarterly report for the year, detailing its financial position as of 30 September 2024, as part of the agenda for a Cabinet meeting on 20 November.   

The report shows a projected overspend of £35.1 million, marking a slight improvement on the projected position at the end of August.  Whilst this could be covered by the council’s £38.8m general fund reserves balance, this would leave funds for unforeseen emergencies as low as £3.7m. 

The council has published monthly finance reports since the start of the financial year, as it overcomes a challenge from increased demand and cost for services, especially in social care, like councils all over the country. 

Shropshire’s position is made even more challenging by its rural geography, it costs more to deliver services when communities are spread across a large area.   

The council has carried out a number of its savings plans since the start of the financial year.  This includes introducing a new charge for collecting garden waste, a booking system for household recycling centres, and moving out of its Shirehall headquarters in Shrewsbury. 

The quarter two report shows that the council expects to deliver £47m of savings from its budget by the end of the year,  53% of the total savings needed.  This includes savings plans from the council’s medium–term financial strategy, as well as savings not fully realised in previous years and additional plans related to managing demand. 

Gwilym Butler, Shropshire Council’s cabinet member for finance, corporate resources and communities said: 

“While the projected overspend has not significantly changed since the first quarter of the year, the underlying figures have become more robust. As each month progresses, more of the council’s spending and income becomes certain, and this reduces the risks.

“What we have now is a clear picture of the steps we must take next, in addition to the major changes we have already introduced, like the new charge for garden waste, taking us in the right direction to overcome our challenge.

“This report show that the council’s budget is as challenging as ever, but that there is scope to improve the position if we stay focused on our plans, prioritising services for the people who need us most and delivering these as efficiently as we can.”

View the financial monitoring report here.