19/12/2025
Bad news for Shropshire.
Yet more bad news for the county finances today, this time courtesy of Labour Ministers. When it rains, it pours...
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.
What's more, it's clear that Ministers expect us to put Council Tax up by the 4.99% 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.
To offer the full background, in comparison to the Medium Term Financial Strategy reported publicly in October Shropshire Council's funding has reduced by £6.5m in 2026/27 as a result of the settlement.
Following the announcement of the Policy Statement in November, calculations of funding were revised and this formed the basis of the county's Emergency Financial Support application to government. In comparison to these figures, we're marginally better off by £1.2m in 2025/26, however down £2m in 2026/27, a further £6.2m in 2027/28 and £6.4m in 2028/29.
This means a reduction in funding from £149.7m this year to £136.3m in 2028, down by £13.4 million, with an expectation that Council Tax goes from £205.1 million to £266.6 million. Less money, more tax, and not enough to cover cost pressures.
For context, social care pressure this year alone was £19.5m and is likely to be higher in future years with an ageing population.
We will do everything we can to protect services, but it feels like quite a bleak day. It is clearly impossible to provide the type of services that residents expect on that level of funding, and our external auditors have been clear we need to only deliver 'Minimum Service Provision' countywide, unless partners can step in.
There are no cuts left to make in many teams, single figures or even one person in many areas like flooding, planning enforcement, bus stations and car parks.
The county will need to more urgently look at new model of working and delivering to protect the county from the brunt of this.
