Recommendation made for Shropshire fire service council tax hike

Fire authority chiefs in Shropshire have been recommended to increase their share of the council tax by 4.18 per cent.

A committee of councillors agreed that Shropshire & Wrekin Fire & Rescue Authority has “no option” but to go for a Band D rise of £5 in its share of the tax.

Councillor David Minnery (Lib Dem, Market Drayton South) said it was “disappointing” that the amount of money coming from central government is “not as good as we require.”

Councillor Minnery chairs the overall Shropshire & Wrekin Fire and Rescue Authority which is set to make the final decision in February.

Speaking at the strategy and resources committee on Thursday (Jan 22) he added that the settlement is a “slap in the face.”

“We try not to be a political organisation but register disappointment that the Government did not listen to our submissions or those of Shropshire Council.”

But he added that the authority had to be ‘prudent’.

“There is no option other than to go with £5.”

The fire authority would have to go to a referendum if it wanted to increase the Band D rate – the national average banding – by more than £5.

Councillor Roger Evans (Liberal Democrats, Longden) seconded the move at ther meeting held at Shrewsbury Fire Station.

Councillor Evans chairs the strategy and resources committee at the same time as being Shropshire Council’s portfolio holder for finance.

The committee was told that the council tax is expected to make a greater share of the fire service budget in future as grants from government reduce.

If ratified by the full fire authority it expects to spend  £31,298 million in 2026-27 and be left with a deficit at the end of 2026-27 of £310,000.

The deficit can be covered by use of reserves but it leaves the authority with less available for investment and growth.

Joanne Coadey, the fire authority’s head of finance, said a three year settlement from government includes a funding floor to provide a base level for the budget.

Over the next three years the authority forecasts an improvement in its budget ending with a surplus in 2028-29.

But she she added that there remain longer term questions including what will happen after the next General Election.

She said the three year settlement was positive but added: “It is not as healthy as we would have liked to have seen.”

Councillors ruled out recommending a lower increase in council tax because it would mean having a bigger deficit.

The authority is required to invest to address issues raised by inspectors in 2024. And it is looking to complete issues identified in its Community Risk Management Plan.

A report presented to the committee says that efficiencies and productivity will be reviewed with the introduction of a business analyst in 2026/27, and improvements identified.

“Any further funds required to balance the budget would be found in reserves
in the short term,” the report reads.

“The authority must then consider how its reserves will be replenished to protect the service into the medium term.

“Increasing the precept by £5 (Band B) – 4.18 per cent – is in line with government assumptions within the calculation of core spending power.

“The increase may allow for some growth and investment to be achieved during the later years of the settlement.”

The across the board increase for residents is set to increase by 4.18 per cent to pay for the fire service segment of the tax. But the actual amount shown on bills will vary depending on their council tax banding, with Band D at £5.

Officials agreed to look at moving the planned date of full fire authority from February 25 after being told that this would give just 24 hours for officials at Shropshire Council to crunch the final numbers before councillors there set the full council tax.

The full council tax is made of the precepts from the fire authority, town and parish councils, the police and the unitary authorities – either Telford & Wrekin or Shropshire.