Cabinet to consider next steps towards financial recovery and support for residents
Shropshire Council’s Cabinet will consider proposals on 18 November 2026 to continue the process to return the council to a financially sustainable footing while protecting residents who need support most. The agenda brings together an update on the council’s finances and initial proposals for services, assets and investment, setting out the challenges ahead and the steps proposed to address them.
The council is on track to balance its budget this year, but still relies on around £90 million of Exceptional Financial Support (EFS) from the government.
The Financial Monitoring Report Quarter 2 2026/27 includes details of the continuing financial pressures and reinforces the sustained action needed for the rest of the year to maintain the forecast on-budget position. Cabinet will consider the report as part of the council’s work to reduce reliance on EFS over time and live within its means.
Looking further ahead, the Draft Medium Term Financial Plan (MTFP) 2027-2032 forecasts a funding gap at the moment of around £108.4 million for 2027/28, reflecting rising demand and cost pressures. This draft estimate is not the final budget and assumes the council stays within budget in 2026/27. Further EFS will be needed to bridge the gap in 2028/29 and work is underway to reduce the estimated requirement.
In particular, work continues to contain cost increases, identify further savings and transform and change how services are delivered, while meeting statutory responsibilities and supporting the most vulnerable. Savings and spending proposals will finally be put forward for agreement in February 2027 by both Cabinet and Full Council.
As part of its discussions with government, the council will seek permission to borrow the necessary EFS for next year and it will also ask for the position on any Council Tax supplement above the capped limit.
Cabinet will also consider proposals to bring Shirehall to market, seek residents’ views on the future of library services and take a longer-term approach to investment through the Draft Capital Strategy 2027-2032. For libraries, Cabinet will be asked to approve a public consultation, prior to making a decision on the service’s future.
Alongside these proposals, the agenda includes proposed Council Tax Support changes and an update on the Crisis and Resilience Fund programme. The council recognises that help is needed by many families and households to meet rising costs and highlights how they propose helping them.
Councillor Heather Kidd, Leader of Shropshire Council, said:
“The forecast that we will finish the year on budget overall is encouraging, but there is much more to do. We are working to get a firmer grip on spending and turn our recovery plans into lasting improvements, while managing the pressures on services that people rely on.
“Financial recovery is about putting the council in a stronger position to deliver the services people need. That means being open about what is affordable, clear about our priorities and ready to listen to our communities as Cabinet considers the next steps.
“The proposals coming to Cabinet set out steps we could take to reduce reliance on EFS and build a more sustainable council. We must be honest about the choices ahead, including the future of Shirehall and how we deliver library services, and give our communities the opportunity to help shape those services.
“Alongside these choices, we want to use existing funding to invest in the future. Through our renewed capital strategy, we are proposing to use Community Infrastructure Levy (CIL) funding to help selected projects move from ambition towards delivery. CIL funding has already supported services and provided infrastructure our communities need, including through SpArC in Bishop’s Castle, Much Wenlock Leisure Centre and investment in our schools. In many cases, this investment will also reduce revenue spending by cutting borrowing or running costs.
“Council Tax is one of the few ways we can raise money locally to help fund the services people rely on. We therefore need to consider an increase seriously, although no decisions have been made. We know the pressure that any increase could put on household budgets.
“That is why we must keep those who need us most at the heart of this work. We hope our proposed Council Tax Support changes will help ease the financial pressure on our more vulnerable residents. Together with the work of the Crisis and Resilience Fund programme, these proposals reflect our commitment to helping people struggling with everyday costs as we plan for a more sustainable future.”
The Cabinet papers are available to read on the council’s website here: Agenda for Cabinet on Wednesday, 18th November, 2026, 10.30 am — Shropshire Council
