Closure of Cornovii Developments Ltd recommended to Cabinet

Shropshire Council’s Cabinet will consider a report on the future of Cornovii Developments Ltd at its meeting on Wednesday 9 September 2026. 

The report recommends the structured closure of Cornovii over a period likely to be at least 18 months. No decision has yet been made. Cabinet will consider the report, the options available and the financial implications before deciding whether to approve the recommendation. 

Cornovii is wholly owned by Shropshire Council and was set up in 2019 to build homes in the county. Since then, it has delivered 196 homes across Shropshire, including affordable homes, homes for sale, private rented homes and rent-to-own properties. 

The report recognises those achievements, but also sets out clearly that the council’s financial position has changed fundamentally. 

Shropshire Council declared a financial emergency in 2025 and has asked Government for around £121 million in Exceptional Financial Support this year. This support is not a grant or additional funding. It is borrowing, and it creates costs for many years to come. 

The report says this position now places significant limits on the council’s ability to borrow for anything other than statutory or regulated requirements. In practical terms, this means the council is no longer in a position to continue borrowing to fund Cornovii’s activities. 

The recommended option is intended to minimise the council’s future financial exposure, protect as much value as possible from sites and assets, and allow Cornovii to be closed in an orderly and responsible way. 

Councillor Heather Kidd, Leader of Shropshire Council, said: 

“We are committed to taking the tough decisions required to get this council back on track. The future of Cornovii Developments Ltd is a good example of a question which we want to put to bed in a sensible manner. 

“We have to be honest about the position we are now in. The council’s financial circumstances have changed, and we cannot continue to invest money we do not have, even though Cornovii’s achievements must also be recognised. 

“Exceptional Financial Support is not free money. It is borrowing, and every pound we borrow now has to be repaid from future budgets. If we are serious about reducing our reliance on that support, and protecting the services residents rely on most, we have to be prepared to take difficult decisions where the evidence shows something is no longer affordable. 

“That is what responsible leadership requires. Carrying on as we are is not an option. We must act in the long-term interests of Shropshire, reduce our reliance on borrowing, and put the council on a stronger and more sustainable footing for the future.” 

If Cabinet approves the recommendation, the council and Cornovii would work together on a managed closure plan. This would include arrangements for sites, assets, legal and tax advice, governance, cashflow and any staffing implications. 

The report will be considered by Shropshire Council’s Finance and Improvement Scrutiny Committee on Monday 7 September 2026 before Cabinet considers the recommendation on Wednesday 9 September 2026.