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 Q4 2025/26 Corporate Plan, and examine progress on the Improvement Plan. The committee also reviewed lessons learned from the organisational transformation programme and considered updates on two specific day services.

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 to ambitious savings targets that proved unachievable and unrecognised demand pressures, particularly within social care. The depletion of council reserves necessitated an application for Exceptional Financial Support (EFS) from the government. The report highlighted key factors affecting the year-end position, including adverse variations in Care and Well Being (£26.3m) and Children and Young People (£12.2m). Corporate Budgets also showed adverse variations of £19.8m, largely due to unachieved savings targets. The report recommended that the committee note the outturn variance, the funding from EFS, the consequent level of the General Fund Balance (£5.000m), and the increase in Earmarked Reserves & Provisions. It also detailed the performance of the Housing Revenue Account (HRA) and the Dedicated Schools Grant (DSG), which showed a £28.029m overspend. The capital programme for 2025/26 was also reviewed, noting 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 of the 31 Key Performance Indicators (KPIs) with targets, 71% were on track, 6% were similar to target, and 23% were below target. Specific areas of concern highlighted included the demand for Education, Health and Care Plan (EHCP) statutory assessments, school readiness figures showing inequality, and a decline in the household recycling rate. The report also noted improvements in homelessness prevention and housing completions, but a slight reduction in the five-year housing land supply position. For the 'Healthy Organisation' aim, improvements were noted in FOI compliance and staff retention, but an increase in sickness absence was highlighted. The proposed Corporate Plan 2026-30 Performance Management Framework, including KPIs and delivery commitments for 2026/27, was presented for review and recommendations.

Improvement Plan - Progress Report

This report was scheduled to provide a summary of the delivery, progress, and impact of the Improvement Plan, which was developed in response to external reports and the declared financial emergency. The Plan is structured around three aims: a financially stable council, a council with clear priorities, and a council that supports its workforce. The report detailed progress on priority programmes, including financial stability, the development of a new Corporate Plan, and strengthening financial management. It noted that while planned activity had largely progressed, some timescales had been adjusted due to interdependencies or ambitious targets. The report highlighted achievements such as securing Exceptional Financial Support (EFS), developing a realistic budget for 2026/27, and improvements in corporate governance and staff engagement.

Organisational Transformation: Lessons Learned Review

The committee was to consider the findings of an independent review by Local Partnerships into Shropshire Council's transformation programme with PwC. The review focused on the strategic purpose of the partnership, its management, and the achievement of original objectives. It identified fourteen lessons learned, categorised as 'critical', 'essential', or 'recommended', aimed at improving future commissioning and management of transformation and change activity. Key lessons included the need for robust business cases, 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 roles and responsibilities, embedding digital and technology leadership, ensuring organisational-wide engagement, and strengthening the role of the Finance function. The council's initial responses to the critical and essential lessons were outlined, focusing on strengthening governance, procurement, and the 'smart client' function.

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

Work Programme

The committee was scheduled to consider proposals for its work programme for 2025–2026. This would involve reviewing planned topics for future meetings and potentially identifying areas for further scrutiny or task and finish group activity. The agenda also listed other identified areas of interest from committee discussions, including the North-West Relief Road, Devolution, Finance Scrutiny, and the Use of Consultants.