Leader warns status quo is not sustainable as Shropshire Council faces major financial decisions

The Leader of Shropshire Council has warned that maintaining the status quo is no longer an option as the authority prepares to tackle the largest financial challenges in its history.

Speaking at Cabinet on Wednesday morning [5 August 2026], Councillor Heather Kidd said the council must embrace change, redesign services and reduce its reliance on borrowing if it is to secure a sustainable future.

The warning comes as Shropshire begins work on its 2027/28 budget and updated Medium-Term Financial Plan.

Despite having a gross expenditure budget of around £923 million, the council’s net budget is approximately £489 million. Against that, the authority is seeking around £121 million of Exceptional Financial Support (EFS) this year, equivalent to roughly 25 per cent of its net budget – the largest borrowing request in the country.

Councillor Kidd also outlined that that this budget gap could rise to 35-40 per cent of the council’s net budget by 2029/30 without significant action to reduce spending and curb demand for services in the upcoming budget.

She told the meeting that rising demand in adult social care and children’s services, coupled with inflationary pressures, means demand is increasing significantly faster than income.

She said the challenge facing the council is no longer one that can be resolved through minor efficiencies or short-term savings exercises.

Instead, she argued that fundamental change is required, including redesign of services, investment to avoidable demand through prevention and early intervention with vulnerable residents, embracing digital transformation, and devolving more powers and responsibilities to town and parish councils.

The Leader also stressed that Exceptional Financial Support is not “free money” but borrowing that future generations of councils will have to repay.

A standard Council Tax rise of 4.99 per cent would raise around £11 million in Shropshire, just under one-tenth of the authority’s net budget gap this year.

Councillor Kidd said that every service, budget and activity must now be examined through the lens of long-term sustainability, adding that “we must make difficult decisions” if the council is to avoid passing even greater financial problems on to future administrations.

She said:

“The reality is simple – the status quo is not sustainable.

“Demand for services is rising far faster than the resources available to fund them, and unless we change how we operate as a council, the financial gap will continue to widen and the cost of borrowing under Exceptional Financial Support will harm our ability to deliver services for the next 20 years.

“As we head into the budget-setting process for 2027/8, we must be honest about the scale of the challenge. That means a renewed focus on investing in prevention, embracing change and making difficult decisions where necessary to turn this around. It also means getting even tougher on where we can no longer keep spending money.

“None of these conversations will be easy, but leadership is about facing problems head on, not avoiding them. Our responsibility is to ensure that Shropshire Council remains financially sustainable and able to support residents for many years to come.”

Councillor Kidd’s opening statement to the Cabinet meeting can be seen below.