Shropshire Council sets budget for 2026/27
Shropshire Council has today, 26 February, agreed its budget for 2026/27 at a meeting of Full Council, marking an important step as the authority continues to navigate some of the toughest financial pressures it has ever faced.
Like around 40 councils nationally, Shropshire Council will rely on Exceptional Financial Support (EFS) from the Government to balance its budget for the year ahead. EFS is not grant funding but borrowing that must be repaid with interest, meaning the council must continue to minimise how much it relies on this support while working towards long‑term financial sustainability.
To stabilise the council’s financial position, councillors have agreed a number of necessary measures, including:
- An 8.99% increase in Council Tax – this is 4% more than it is normally capped at which will raise an additional £8.8 million in vital income for the council.
- Stopping the North West Relief Road project, which is no longer affordable given current financial pressures and rising projected costs.
- Rationalising the capital programme, including pausing or stopping capital schemes.
Shropshire Council says the decisions made today will help ensure it can continue to deliver essential services while reducing its reliance on EFS in future years.
Councillor Heather Kidd, Leader of Shropshire Council, said:
“Today’s decisions have not been easy. We fully recognise that the measures agreed – particularly the increase in Council Tax – will have a real impact on people across Shropshire. We do not take that lightly. Unfortunately, the financial pressures facing the council are unprecedented, and we have had to make difficult choices to protect essential services and stabilise our position for the future.
“Shropshire continues to receive unfair funding from the Government, particularly given the unique challenges we face as one of England’s largest and most rural counties. I want to be clear that I will continue to lobby strongly for a funding settlement that properly reflects our rurality, our demographics, and the costs of delivering services in a county like ours.
“We will keep working hard to ensure we borrow only what we absolutely need, that we make every pound count, and that we continue to move towards becoming a financially sustainable council.”
The council recognises the financial pressures facing many households and is encouraging residents who may struggle with the Council Tax increase to seek support.
With the 2026/27 budget now set, the council will continue work on its wider Financial Sustainability Strategy, which includes transforming how services are delivered, ensuring resources are focused where they make the greatest impact, and continuing to strengthen improvement activity across the organisation.
