Shropshire services on the brink as council funding slashed by £13m
An MP has blasted the Government for “riding roughshod” over rural areas after it was revealed that local authority funding for Shropshire would drop by 10%.
Shropshire Council has been hit by a wave of grim financial projections following the latest local government settlement from Westminster, sparking fears for the future of essential services across the county.
New figures reveal that Shropshire is set to see its central funding slashed by £13.4 million over the next few years. The reduction will see the council’s core funding drop from £149.7 million this year to just £136.3 million by 2028.
The news has been met with dismay by local leaders, who warn that the "double whammy" of reduced grants and rising costs could leave the county’s finances in a precarious position.
Responding to the announcement, Shropshire Council Leader, Cllr Heather Kidd, said: “Labour have let Shropshire down again with this funding settlement, despite repeated promises to fix the funding gap between rural authorities and our urban counterparts.
“We are down £6.5 million in 2026/27 compared to projections from October, due to the fact that Ministers have ignored the higher cost of delivering rural services, removing the remoteness factor from most of our funding. It's clear that rural services will suffer as a result.
“What's more, it is clear that Ministers expect us to put Council Tax up by the maximum every year to counter this. Sadly, that won't come anywhere close to fixing Shropshire's £50 million deficit, with social care pressures likely to be over £20 million next year alone. We will have to make very difficult decisions as a result, and must change our service offer.”
'When it Rains, it Pours'
Alex Wagner, the Deputy Leader of Shropshire Council, did not mince his words when reacting to the settlement. In a stark assessment of the county's ledger, he described the announcement as "yet more bad news for the county finances."
"When it rains, it pours," Cllr Wagner said. "Whilst next-door Telford are getting a huge injection of funds, we've been told that Shropshire can expect a cut of over £13.4 million in funding over the next few years."
The Deputy Leader highlighted a significant disparity between the council’s projected income and the soaring costs of public services. While funding is falling, the government reportedly expects the council to increase Council Tax by the maximum 4.99% every year to bridge the gap.
However, even this record hike is unlikely to solve the problem. Council Tax revenue is expected to rise from £205.1 million to £266.6 million, yet the county still faces a £50 million deficit.
Social Care Under Pressure
The primary driver of the financial strain remains the rising cost of social care. With an ageing population, Shropshire’s social care pressures reached £19.5 million this year alone and are forecasted to exceed £20 million next year.
The funding gap has led to a sobering ultimatum from external auditors, who have advised the council to move toward "Minimum Service Provision" across the board unless external partners can provide support.
No More Room to Cut
For many residents, the concern is that there is simply nothing left to trim. Cllr Wagner noted that many departments are already operating on "skeleton" staff.
"There are no cuts left to make in many teams," he warned. "Single figures or even one person in many areas like flooding, planning enforcement, bus stations and car parks."
The council has indicated that it will now be forced to urgently explore "new models of working" to protect residents from the worst of the austerity measures. For now, however, the mood remains sombre, with leaders describing it as a "bleak day" for the county’s future.
Helen Morgan MP blasts the Government
Helen Morgan MP has blasted the government for “riding roughshod” over rural areas after it was revealed that local authority funding for Shropshire would drop.
Cross-party MPs and council leaders have made clear to the Government how serious the situation in Shropshire is, but Helen said this had been ignored and claims of helping to put the authority on a stable footing were “clearly false”.
The MP has written to the Secretary of State for Housing, Communities and Local Government, Steve Reed MP, to express her “shock and disappointment” at the decision.
Helen Morgan, MP for North Shropshire, said: “Yet again Shropshire has been left out in the cold and let down by a Westminster government that does not care about rural areas.
“Services cost far more to deliver in places like Shropshire and yet this Government is splashing the cash on urban areas while leaving rural taxpayers to foot the bill.
“The Government is wrong to be celebrating a cynical deal that rides roughshod over rural areas and fails to acknowledge the reality of the financial emergency facing Shropshire and other counties across the country."
