Shropshire Council unveils £51m savings plan to avert bankruptcy
Shropshire Council, which recently declared itself "unbelievably close" to bankruptcy, has announced a £51m savings plan aimed at balancing its budget for the next financial year.
The proposals involve significant staff reductions, restructuring of senior management, and applying to the government for a capitalisation direction.
The council plans to cut 540 jobs from its 3,500-strong workforce, a move expected to save £27m. A further £1.136m will be saved by reducing senior management posts earning over £100,000 from 20 to 12.5 (including one post shared with the NHS).
Council leader Lezley Picton described the situation as the "most difficult financial situation" she's faced in local government, but emphasised the council's determination to "be in control of our own destiny."
To manage costs associated with the transformation, such as redundancy payments and consultancy fees, the council has applied for a "capitalisation direction" from the government. This would allow them to sell assets or borrow funds. A decision on this request is expected within weeks, with the council stating they have a "Plan B" if the application is unsuccessful.
Despite the significant savings required, Cllr Picton reassured residents that some key services would be protected. She confirmed that three-weekly bin collections would not be introduced and that the £56 garden waste collection charge would not increase in 2025-26.
The council's strategy also includes increased enforcement against issues like illegal parking, littering, and dog fouling. "We're not willing to let people get away with these things anymore," Cllr Picton stated. The council is also looking to collaborate with town and parish councils on managing green spaces, increasing foster carer numbers, and reviewing highways maintenance and outdoor services.
Cllr Gwilym Butler, cabinet member for finance, highlighted the "significant progress" made, including the council's move from Shirehall to the more cost-effective Guildhall in Frankwell. He expressed optimism about the future, stating, "This is the right time to be bold and optimistic as we take the vital next steps to future sustainability – becoming the council we need to be."
The budget proposals will be presented to the full council on February 27th. The council's ability to identify such significant savings has been hailed by some as a remarkable achievement, averting what appeared to be a looming financial crisis. However, the impact of the job losses and service changes will likely be closely watched by residents.
