Calls to scrap 8.99% council tax rise

Shropshire Council is being asked not to increase council tax by nearly nine per cent – with an opposition group saying it would be “morally and financially wrong”.

The Liberal Democrat administration has been granted its request for nearly £200 million worth of government money to ensure it staves off the threat of effective bankruptcy.

However, despite the £192.8m of ‘exceptional financial support’ (EFS) covering up to the end of the next financial year, the authority is still expected to pass the 8.99 per cent rise in council tax after being granted permission from the Government.

It is expected that the increase would generate an extra £8.8 million of income. Even then, Shropshire Council says the financial challenges will remain signifcant, pointing out inflation, rising costs, and growing demand – particularly in social care.

Whether or not the increase is approved will be down to Shropshire’s 74 councillors, who will vote on the budget this Thursday (February 26).

“Council tax alone cannot keep pace with these pressures, and ongoing reductions in government funding widen the deficit further,” said Councillor Heather Kidd, leader of Shropshire Council.

Deputy leader Councillor Alex Wagner added that, even after asking residents to pay more, the council would still be over £4m worse off due to the Government’s £13m cut in funding.

“This isn’t about spending choices locally; it’s about a national funding system that is leaving counties like Shropshire short-changed and forcing councils into impossible decisions,” said Councillor Wagner.

Councillor Kidd added: “In reality, this leaves us with no choice but to borrow up to £121 million from the Government as part of our EFS ask, significantly increasing our long‑term debt.

“With limited ability to increase our core spending power and more statutory duties being passed to councils without the funding to deliver them, borrowing remains the only option to bridge the immediate gap.” 

However, now the EFS request has been granted, the North Shropshire Conservative Association (NSCA) says there is no longer a need to increase council tax by so much.

“The granting of EFS changes the situation significantly,” said an NSCA spokesperson.

“The immediate financial cliff edge has been avoided. It would now be both morally and financially irresponsible to push through an 8.99 per cent council tax rise when residents are already under sustained cost-of-living pressure.

“This support gives the council time to stabilise its finances properly. Shropshire families should not be asked to plug gaps through record tax rises when alternative support has now been secured.”