Shaun Davies welcomes £67m cash injection for Telford & Wrekin to boost local services

Telford MP Shaun Davies has welcomed the Government’s announcement that Telford & Wrekin will receive a £66.6m cash injection for essential services over the next four years – a 34% increase in the Council’s spending power – under the new provisional Local Government Finance Settlement.

This uplift marks a change from Local Government Finance Settlements under the previous Government, with core spending power for councils across England down by around a quarter since 2010. That put immense pressure on councils up and down the country, including Telford & Wrekin. Telford & Wrekin is expected to see more money from the Government under reforms to the local authority funding system.

This follows a meeting held between Shaun Davies, Lee Carter – Leader of Telford & Wrekin Council – and Housing, Communities and Local Government Secretary Steve Reed OBE MP in November. At the meeting in Whitehall, the three discussed the work the Council does to serve its community, and the resources the Council needs to expand that work.

Under the Fair Funding programme, England’s councils will get an extra £16.1bn over the next four years for essential service, with more money set to be diverted to areas with the greatest need. Councils will have more resources available to bring back libraries, youth services, clean streets, and community hubs.

In total, councils will see a 23.6% increase in their core spending power compared to 2024-25 to pay for services including bin collections, housing, and children’s services. Telford and Wrekin Council will fare even better, with a 34% increase.

Shaun Davies MP, Member of Parliament for Telford, said: “This Settlement is a game-changer for Telford & Wrekin. It couldn’t be more different from the years of austerity and neglect that starved councils like ours of resources and powers for years. I welcome the £67m funding uplift, but I also welcome the reforms that will mean more money for Telford & Wrekin going forward. Determining council funding by need, and ability to deliver, is the right approach and will make a major difference to our community.

“Telford and Wrekin Council already has the lowest Council Tax in the Midlands and the second lowest for a Council of its kind in England – now with a fair, multi-year funding deal, the Council can do even more to create a better Telford and Wrekin. This is on top of record funding for potholes and road upgrades, bus services and regeneration schemes.”

Labour Secretary of State for Housing, Communities and Local Government Steve Reed said: “This is a turning point, a chance to turn the page on a decade of cuts and callousness, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs. For too long, deprived communities were left behind. Today we're ending the postcode lottery so everyone can access the services their community deserves.

“Telford and Wrekin Council is a high-performing, award-winning Council with outstanding services judged by OFSTED and the CQC - thanks in no small part to the strong leadership of the Council from Shaun and Lee - but the Council has been short-changed through a Government formula which hasn’t worked for places like Telford.

"That’s why I am determined to give the Council the tools it needs to improve the town, on top of the £20m Pride in Place funding, more cash than ever before to fix potholes and upgrade roads, and much more to come. Having visited Telford with Shaun, I know how ambitious he is for his area – that’s why I have met him and Council colleagues twice more in recent months, to ensure I understand what Telford and Wrekin needs.”

The Leader of Telford & Wrekin Council, Councillor Lee Carter, said:

“Yesterday, the Government announced a landmark multi-year financial settlement for local authorities, something we have long advocated for, including on my most recent visit to Westminster Shaun Davies, the MP for Telford, where we met with the Secretary of State for Homes, Communities and Local Government, Steve Reed MP.

“This welcome announcement follows more than 14 years of austerity and reductions in local government funding, which has seen Telford & Wrekin Council have to make over £195m in savings since 2009. Despite making these ongoing savings, Council costs have continued to increase, with the cost of social care alone forecast to grow by over £15m next year, with total spend on social care accounting for over two-thirds of our entire budget.

"Now, for the first time in over a decade, councils have been given clarity on funding beyond a single year. This three-year settlement provides the certainty we need to plan strategically and make informed, long-term decisions, something that has not been possible under previous one-year arrangements.”

Based on the fairer funding formula, Telford & Wrekin Council is forecast to receive an increase of almost £67 million in spending power between 2024/25 and 2028/29. In real terms, against the rising costs of care, this will be a welcome boost of 8.8% to next year’s spending power, with over £6m in additional general funding alongside increased targeted funding for specific areas such as homelessness and children’s services.

Councillor Carter added:

“Coupled with fairer and increased funding from Government, this settlement will allow us to continue to protect and support the most vulnerable residents in Telford and Wrekin, while investing in the things that matter to residents most, from homes to highways, high streets to homelessness, skills, employment and education. It means we can also maintain those extra services such as free parking and free green waste collections that we know our residents value, at the same time as keeping our Council Tax the lowest in the Midlands and among the lowest nationally.”