Grant Thornton report recognises progress while setting out significant challenges 

Shropshire Council has received Grant Thornton’s Interim Auditor’s Annual Report for the year ending 31 March 2026. The report will be considered in public at a special meeting of Full Council on Thursday 5 November 2026. 

This is an annual report produced by the council’s external auditor as part of the standard audit process that applies to all councils. 

A core element of the independent report is the auditor’s commentary on the council’s value for money (VfM) arrangements. This assesses whether the council has proper arrangements in place to use public money and resources economically, efficiently and effectively – securing the right resources at the right cost, making the best use of them and achieving the intended results. 

The report looks back at the council’s arrangements during 2025/26 and makes 12 recommendations. These include two statutory recommendations which recognise the financial recovery and organisational improvement challenge.    

The council is committed to being open and transparent about the report’s findings. It acknowledges the seriousness of the issues raised, including longstanding weaknesses in financial management and governance, challenges in delivering savings, and pressures on organisational capacity and capability. 

Grant Thornton also recognises positive signs of recovery later in the year. These include stronger political and officer leadership, improved financial grip and governance, the establishment of an independently chaired Improvement Board, and greater energy, pace and commitment across the organisation. 

The report notes the stronger framework created by the council’s Improvement Plan and the progress made in key services. Adult Social Care was rated Good by the Care Quality Commission and Children’s Services received an Outstanding Ofsted judgement. 

Since the period covered by much of the report, the council has continued to act. A Financial Sustainability and Recovery Strategy has been approved, spending controls and budget monitoring have been strengthened, governance and risk-management arrangements are being improved, and additional senior leadership capacity has been recruited. 

The council is bringing its response to Grant Thornton’s recommendations together with those from other recent external reviews into a refreshed Improvement Plan to be considered by Cabinet in December. The Plan will continue to provide a single, clear framework for delivery, accountability and transparent reporting to councillors, the Improvement Board, government and local people. 

The report is clear that the council’s financial position remains extremely challenging. Reducing and ultimately ending reliance on Exceptional Financial Support (EFS) will require sustained delivery of service transformation, recurring savings, stronger financial controls and careful management of demand and resources over several years. 

Councillor Heather Kidd, Leader of Shropshire Council, said:

“We will be open and transparent about Grant Thornton’s report. It sets out serious findings and recommendations, and we accept that the council must continue to change if we are to rebuild financial resilience, strengthen governance and deliver consistently for the people of Shropshire. 

“This report largely reflects the council’s position during 2025/26, under a budget set by the previous administration. Since then, we have taken significant action. EFS granted earlier this year has enabled investment in transformation and change. It is encouraging that the auditors recognise the early signs of recovery, including stronger leadership, improved financial grip and the progress delivered through our Improvement Plan. 

“We are not complacent. Reducing our reliance on EFS is one of the biggest challenges we face and will take sustained discipline, difficult decisions and transformation across the council. Our aim is to achieve a balanced and resilient financial position that protects essential services, delivers value for money and enables us to move out of the Best Value Notice as soon as possible. 

“We are now bringing all of the external recommendations into a refreshed Improvement Plan, with clear actions, milestones and accountability. The special meeting of Full Council will give councillors the opportunity to consider the report publicly, decide how to respond to the statutory recommendations and ensure that progress remains open to scrutiny.” 

View the papers for the special meeting of Full Council on 5 November 2026, including Grant Thornton’s Interim Auditor’s Annual Report here.