Auditor sets out recommendations on Shropshire Council's finances

An independent auditor has made 12 recommendations, including two statutory recommendations, in a report on how Shropshire's local authority managed its money and governance during 2025/26.

Shropshire Council has received Grant Thornton's Interim Auditor's Annual Report for the year ending 31st March 2026.

It will be considered in public at a special meeting of Full Council on Thursday 5th November 2026.

What the report is

The council said the report is produced each year by its external auditor as part of the standard audit process that applies to all councils.

A core part of it is the auditor's commentary on the council's value for money arrangements.

The council said this assesses whether it has proper arrangements in place to use public money and resources economically, efficiently and effectively.

The report looks back at the council's arrangements during 2025/26.

The council said the two statutory recommendations recognise the financial recovery and organisational improvement challenge.

The council's response

Shropshire Council said it is committed to being open and transparent about the findings.

It said it acknowledges the seriousness of the issues raised.

These include longstanding weaknesses in financial management and governance, challenges in delivering savings, and pressures on organisational capacity and capability.

The council said the report is clear that its financial position remains extremely challenging.

It said reducing and ultimately ending reliance on Exceptional Financial Support will require sustained delivery of service transformation, recurring savings, stronger financial controls and careful management of demand and resources over several years.

Signs of recovery

According to the council, Grant Thornton also recognises positive signs of recovery later in the year.

These include stronger political and officer leadership, improved financial grip and governance, and the establishment of an independently chaired Improvement Board.

The council said the auditor also noted greater energy, pace and commitment across the organisation.

The report notes the stronger framework created by the council's Improvement Plan and progress made in key services.

Adult Social Care was rated Good by the Care Quality Commission, and Children's Services received an Outstanding judgement from Ofsted.

Action since the period covered

The council said it has continued to act since the period covered by much of the report.

It said a Financial Sustainability and Recovery Strategy has been approved.

Spending controls and budget monitoring have been strengthened, and governance and risk-management arrangements are being improved.

The council said additional senior leadership capacity has been recruited.

What happens next

The council is bringing its response to Grant Thornton's recommendations together with those from other recent external reviews.

These will form a refreshed Improvement Plan, which is due to be considered by Cabinet in December.

The council said the plan will continue to provide a single framework for delivery, accountability and transparent reporting to councillors, the Improvement Board, government and local people.

What the council leader said

Councillor Heather Kidd, Leader of Shropshire Council, said: "We will be open and transparent about Grant Thornton's report. It sets out serious findings and recommendations, and we accept that the council must continue to change if we are to rebuild financial resilience, strengthen governance and deliver consistently for the people of Shropshire."

She added: "This report largely reflects the council's position during 2025/26, under a budget set by the previous administration. Since then, we have taken significant action. EFS granted earlier this year has enabled investment in transformation and change. It is encouraging that the auditors recognise the early signs of recovery, including stronger leadership, improved financial grip and the progress delivered through our Improvement Plan."

She also said: "We are not complacent. Reducing our reliance on EFS is one of the biggest challenges we face and will take sustained discipline, difficult decisions and transformation across the council. Our aim is to achieve a balanced and resilient financial position that protects essential services, delivers value for money and enables us to move out of the Best Value Notice as soon as possible."

She went on to say: "We are now bringing all of the external recommendations into a refreshed Improvement Plan, with clear actions, milestones and accountability. The special meeting of Full Council will give councillors the opportunity to consider the report publicly, decide how to respond to the statutory recommendations and ensure that progress remains open to scrutiny."

The papers for the special meeting, including the auditor's report, have been published by the council.

{{news}}