Shropshire faces 'triple squeeze' as funding gap set to widen significantly

The data highlights an accelerating divergence in government support that threatens to leave the local authority in a precarious financial position by the end of the decade.

According to the latest figures, central government funding for Shropshire is projected to drop by approximately 10% between the 2025/26 and 2028/29 financial years. This reduction is notably more severe than the 4% decrease expected across other rural authorities and stands in stark contrast to a forecast 10% increase in funding on a national level. The disparity suggests that Shropshire is not merely facing a static disadvantage but is being left behind by a widening fiscal gulf.

The scale of the challenge becomes even more apparent when analysed on a per-person basis. In the 2025/26 period, Shropshire receives roughly £450 per head, which is already trailing the rural average of £485 and the national upper-tier average of £516. However, by 2028/29, this figure is expected to plummet to £396 per resident. By that stage, the national average is projected to rise to £559, meaning Shropshire will be receiving 29% less funding per person than the rest of the country.

In practical cash terms, the gap between Shropshire and the national average is set to more than double, climbing from £66 per person to over £160. Local leaders warn that while Council Tax income is expected to rise, these increases will fail to offset the scale of the grant reductions. This leaves the council with a structural deficit that must be managed internally at a time when the county’s population is both growing and ageing.

The "triple squeeze" identified in the report refers to the combination of rapidly falling government support, a widening per-resident funding gap, and the high cost of delivering services across a vast, rural geography.

Shropshire maintains nearly 3,200 miles of roads and faces significant inflationary pressures in adult social care and children’s services. Despite two recent independent reviews by the Local Government Association confirming that Shropshire’s adult social care spending remains efficient and in line with similar authorities, the sheer complexity of delivering care in a sparse county keeps costs high.

In response to these pressures, Shropshire Council has already declared a financial emergency. The authority is currently undergoing a radical transformation programme aimed at restoring long-term sustainability. This strategy includes a wide-ranging redesign of services and an emerging devolution programme, which seeks to hand more control to Town and Parish Councils. By shifting power to the local level, the council hopes to protect essential frontline services while allowing communities to have a more direct say in their local priorities during these lean years.

Speaking about the findings, Shropshire Council’s Deputy Leader, Councillor Alex Wagner, said:

“This analysis shows that Shropshire is being short-changed, and that the gap is getting worse rather than better. We already receive less funding per head than comparable areas, and by the end of this period that gap grows to around £160 per person compared to the national average – 29% lower in fact. 

“That is a significant and sustained disadvantage for a county like ours, where demand is rising and services cost more to deliver. Even with increases in Council Tax and other fees, we cannot make up for reductions of this scale in Government funding. 

“We are taking the difficult decisions needed locally to restore financial responsibility, use taxpayers’ money wisely, and protect services, but this analysis only strengthens the case for a fairer national funding system – one that properly recognises rural areas like Shropshire. It also shows the scale of the challenge to change and improve in everything we do.”