A council that says its financial situation is “heartbreaking” has released the latest overspending figures that are slightly better than expected.

Shropshire Council has forecast an overspend of £35.1m at the end of September, which is better than its projected position the previous month.

However, while this could be covered by the general fund reserve balance of £38.8 million, it would leave its budget for unforeseen emergencies at £3.7 million.

The local authority, which has indicated an increase in demand for services Due to its financial difficulties, it has published monthly reports since the beginning of the year due to its situation.

The percentage of its net budget spent on social care has risen from 58% to 74% in the last six years, and the number of children in council care has increased by more than 80% since 2020, figures show.

“After months of uncertainty, these figures suggest the council will limp through to the end of March and avoid running out of money,” he says Rob Trigg, BBC Shropshire political reporter.

But using reserves, effectively the council’s rainy-days piggy bank, to cover the planned £35.1m overspend leaves the authority exposed.

There is only £38.8m in the fund, so another shock, such as the invasion of Ukraine in 2022, and the resulting impact on inflation, could push the council into the red.

Either way, employers and members of the ruling Conservative group can breathe a sigh of relief and hope that the winter months do not lead to a significant increase in demand for services.”

The council needs to save £62.5 million in 2024/25, which is equivalent to £191 per resident, and is more than any other council in England.

The latest report suggests it currently expects to achieve savings of £47m by the end of the year, meaning it is reviewing the impact in 2025/26 and assessing how to minimize it over the next four months.

Changes to boost finances have included charging people £56 a year to remove garden waste, to which some 63,000 residents have signed up.

The second quarter financial monitoring report will be sent to the council cabinet next Wednesday.