The Finance and Improvement Overview and Scrutiny Committee of Shropshire Council met on Monday 8 June 2026 to review the council's financial outturn for the 2025/26 financial year, discuss performance against the Corporate Plan, and examine progress on the Improvement Plan and organisational transformation. The committee also had scheduled discussions on the Aquamira Learning Disability Day Service and the Helena Lane Older Peoples Day Service.

Financial Outturn 2025/26

The committee was scheduled to consider the Financial Out-turn Report for 2025/26, which detailed a significant adverse variation from the General Fund budget. The report highlighted that ambitious savings targets and embedded demand pressures, particularly in social care, proved unachievable. This led to a need for Exceptional Financial Support (EFS) from the government to maintain reserves and address the structural deficit. The report indicated a net adverse variation of £49.428m to the General Fund budget for the year, with net spending of £338.014m against a budget of £288.586m. Key factors affecting the year-end position included adverse variations in Care and Well Being (£26.3m) and Children and Young People (£12.2m). Corporate Budgets also showed net adverse variations of £19.8m, including £33.379m of unachieved savings targets. The report recommended noting that £19.637m had been funded by EFS, leaving £29.278m to be funded from General Fund reserves and balances, resulting in a General Fund Balance of £5.000m. The Housing Revenue Account (HRA) showed a surplus of £1.372m, while the Dedicated Schools Grant (DSG) had an overspend of £28.029m. The report also detailed variations in the capital programme, with a net budget decrease of £26.932m for 2025/26, largely due to the cancellation of the North-West Relief Road project.

Q4 Performance Report and Corporate Plan Performance Framework

The committee was scheduled to review the Quarter 4 (2025/26) performance against 'The Shropshire Plan 2022-2025' and consider a proposed performance framework aligned to the new Corporate Plan 2026–2030. The report indicated that 77% of the 31 Key Performance Indicators (KPIs) with targets were meeting or exceeding their target in Q4. However, seven KPIs were identified as exceptions, including EHCPs issued within 20 weeks, FOI responses within statutory timescales, staff sickness absence, school readiness for disadvantaged children, household waste recycling rates, the five-year housing land supply position, and data breaches reported to the Information Commissioner. The report also presented a proposed Performance Management Framework for the new Corporate Plan, including approximately 50 strategic-level KPIs and key delivery commitments for 2026/27.

Improvement Plan - Progress Report

This agenda item was scheduled to provide a summary of the delivery, progress, and impact of the Improvement Plan, which was approved in December 2025. The plan aims to achieve financial stability, clear priorities, and a supported workforce. The report highlighted that planned activity to stabilise the financial position had been delivered, including securing Exceptional Financial Support (EFS) and approving the 2026/27 budget. Progress was also noted in strengthening financial management practices, corporate governance improvements, piloting devolution of services to parish and town councils, and developing a new Corporate Plan. The report indicated that the Improvement Plan would be refreshed to reflect completed delivery and evolving organisational priorities.

Organisational Transformation: Lessons Learned Review

The committee was scheduled to review the findings of an independent review by Local Partnerships into the Council's transformation programme with PwC. The review focused on the strategic purpose of the partnership, its management, and the achievement of original objectives, aiming to identify lessons learned for future transformation and change activity. The report summarised fourteen lessons learned, categorised as 'critical', 'essential', or 'recommended', and outlined the Council's initial responses to these. Key lessons included the need for robust business cases for transformation programmes, broader senior leadership involvement in decision-making, regular assurance reviews, and enhanced scrutiny by elected members and Internal Audit. The report also emphasised the importance of clear communication, defined roles and responsibilities, and the central role of the Finance function in future transformation efforts.

Aquamira Learning Disability Day Service and Helena Lane Older Peoples Day Service

The committee was scheduled to note reports and reviews concerning the financial sustainability of both the Aquamira Learning Disability Day Service and the Helena Lane Older Peoples Day Service. For both services, it was recommended that progress in delivering the wider Adult Social Care Transformation Plan be reviewed by the People Overview and Scrutiny Committee in 12 months' time. Reports for these items were noted as being released shortly before the meeting.

Work Programme

The committee was scheduled to consider proposals for its work programme for 2025–2026. This included a list of upcoming agenda items, such as performance monitoring reports, financial outturn reports, and updates on the Improvement Plan and Organisational Transformation. The work programme also identified other areas of interest for potential future scrutiny, including the North-West Relief Road, Devolution, Finance Scrutiny, and the Use of Consultants.