The Finance and Improvement Overview and Scrutiny Committee of Shropshire Council met on Monday 08 June 2026 to discuss the council's financial outturn for the 2025/26 financial year, review performance against the Q4 Corporate Plan, and examine progress on the Improvement Plan. The committee was also scheduled to consider the findings of a lessons learned review into the council's organisational transformation programme.

Financial Outturn 2025/26

The committee was scheduled to consider the Financial Out-turn Report for 2025/26. This report detailed a significant adverse variation from the General Fund budget, amounting to £49.428 million. The report attributed this variation to ambitious savings targets that proved unachievable and embedded demand pressures within social care. The depletion of council reserves and balances necessitated an application for Exceptional Financial Support (EFS) from the government to maintain a minimum level of reserves and cover capital costs of an aborted road project. The report indicated that £61.791 million of EFS was utilised in 2025/26.

Key recommendations for Cabinet included noting the outturn variance, the level of EFS funding, the consequent low level of the General Fund Balance (£5 million), and the increase in Earmarked Reserves. The report also highlighted a £28.029 million overspend for the Dedicated Schools Grant (DSG) and a cumulative deficit of £45.655 million. In respect of the capital programme, the report detailed net budget variations and re-profiled budgets for future years.

Q4 Performance Report and Corporate Plan Performance Framework

The committee was set 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 updated Key Performance Indicators (KPIs) for Q4 2025/26 were meeting or exceeding their targets. However, seven KPIs were identified as exceptions, including issues with issuing Education, Health and Care Plans (EHCPs) within statutory timescales, responding to Freedom of Information (FOI) requests within deadlines, and staff sickness absence. New exceptions this quarter included the council's five-year housing land supply position, school readiness for children from disadvantaged backgrounds, household waste recycling rates, and data breaches. The proposed Corporate Plan 2026-2030 Performance Management Framework includes a suite of approximately 50 strategic-level KPIs and delivery commitments for 2026/27.

Improvement Plan - Progress Report

The committee was scheduled to receive an update on the progress of the Improvement Plan, which was approved in December 2025. This plan aims to address financial challenges, stabilise the council, and drive long-term financial sustainability. 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. It also noted progress in strengthening financial management practices, corporate governance improvements, and the development of a new Corporate Plan 2026-30. The report indicated that some programmes were nearing completion, while others, such as those focusing on financial sustainability and partnership working, were evolving. The report also detailed the council's response to the External Auditor's statutory recommendation regarding financial management.

Organisational Transformation: Lessons Learned Review

The committee was to consider the findings and recommendations from an independent review of the council's transformation programme with PwC. This review examined the strategic purpose, management, and effectiveness of the partnership, aiming to identify lessons for future transformation initiatives. The review highlighted fourteen lessons learned, categorised as 'critical', 'essential', or 'recommended'. Key critical lessons included the need for a business case for future transformation programmes, ensuring organisation-wide embrace of change through visible leadership and communication, and the importance of defining roles and responsibilities clearly. Essential lessons emphasised robust governance, regular assurance reviews, the critical role of the Finance function, and the need for clear digital transformation capabilities. The report outlined the council's initial responses to these lessons, focusing on strengthening governance, commissioning, and financial oversight.

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 the Aquamira Learning Disability Day Service and the Helena Lane Older Peoples Day Service. It was noted that progress in delivering the wider Adult Social Care Transformation Plan would be reviewed by the People Overview and Scrutiny Committee in 12 months' time. However, these reports were marked as REPORT TO FOLLOW due to late release of cabinet reports.

Work Programme

The committee was also scheduled to consider proposals for its work programme for 2025–2026. This included a list of planned agenda items for future meetings, such as financial and performance monitoring reports, the financial strategy, and updates on partnership working. Additionally, other areas of interest identified from previous committee discussions were noted, including the North-West Relief Road, Devolution, and the use of Consultants.